Loan Points Today

One point typically costs 1% of your total loan amount . For example, on a $300,000 mortgage, one point costs $3,000.

This is the most critical metric. It is the number of months it takes for your monthly interest savings to equal the upfront cost of the points. Pros and Cons loan points

Loan points, specifically , are a tool used to "buy down" a mortgage interest rate by paying more upfront at closing. While they can save homeowners thousands of dollars over time, their value is entirely dependent on how long you keep the loan. Core Mechanics One point typically costs 1% of your total loan amount