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🎯 Points & Buydown

Should You Buy Discount Points?

See what paying points to lower your rate costs upfront — and exactly how long until it pays for itself.

Buydown Details

Loan Amount $320,000
$50K$2M
Base Interest Rate 6.5%
2%12%
Discount Points 1.00
04
How this works: 1 point = 1% of your loan amount, paid upfront, and lowers your interest rate by about 0.25%. Actual buydown costs and rate reductions vary by lender, loan type, and market conditions.
Base Rate
New Rate
Base Payment
New Payment
You Pay Upfront

Buying points makes the most sense when you plan to keep the loan past the break-even point. If you may sell or refinance sooner, the upfront cost may not pay off.

Your break-even point is when your accumulated monthly savings equal the upfront cost of the points. After that, the savings are pure benefit.

Break-Even Point
Cost of Points
Monthly Savings
Lifetime Net Savings
Lower Monthly Payment By
$0
Monthly Savings
Break-even in
Cost of Points$0
New Rate6.50%
Base Payment$0
New Payment$0
Lifetime Net Savings$0
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This calculator provides estimated results for illustration purposes only. Actual point costs, rate reductions, and payments depend on credit score, loan-to-value, property type, and lender terms. Contact us for a personalized quote.

💡 Pro Tips

  • Points pay off only if you keep the loan past the break-even point
  • Planning to sell or refinance soon? Points usually aren't worth it
  • Discount points are often tax-deductible — ask your tax advisor
  • Sellers or builders can sometimes pay your points as a concession

Calculators Estimate. We Deliver.

This tool gives you a solid starting point — but your actual rate, point cost, and buydown options depend on credit score, loan type, and lender. We shop 50+ lenders for you.

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Florida market note: As Florida buyers adjust to 6.5% rates, buying down the rate is back on the table — see whether the upfront cost pays off for you.

Is buying down your mortgage rate worth it?

Paying discount points lowers your interest rate, but it costs money up front. Whether it pays off depends on how long you keep the loan. This calculator finds your break-even point so you can decide whether buying down your Florida mortgage rate makes sense for you.

If you'll stay long enough to recover the cost, points can save real money. If not, that cash may be better kept for your move.

How the points estimate works

Enter your loan, the points offered, and the rate reduction, and we show your monthly savings and how long until the upfront cost pays for itself.

Frequently asked questions

What are discount points?

Prepaid interest — each point typically costs 1% of the loan and lowers your rate by a set amount, reducing your payment.

When is buying points worth it?

When you'll keep the loan past the break-even point, so the monthly savings exceed the upfront cost. The calculator finds that point.

Can the seller pay my points?

Sometimes — seller concessions can fund a rate buydown if negotiated. Ask your agent what's realistic.

General information for Florida home buyers and sellers, not legal, tax, or lending advice. Figures are planning estimates; your final numbers come from your lender, title company, and closing agent.

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