Calculate mortgage points to understand how they affect your loan costs and interest rate
Learn how to use the Lender Point Calculator to make informed mortgage decisions
Mortgage points are optional fees you can pay to reduce your mortgage interest rate. Each point typically costs 1% of your loan amount and reduces your rate by 0.25 percentage points.
You might consider points if:
New Interest Rate = Current Rate + (Points × Rate Change per Point)
Where:
Current Rate = Your existing mortgage interest rate
Points = Number of points you purchase
Rate Change per Point = The amount the rate decreases for each point purchased