U.S. Mortgage Index

U.S. Mortgage Index

Discount Points Calculator

Compare two quoted mortgage options to see how a lower rate and different upfront costs may affect your payment over time.

← All mortgage calculators

Loan being compared

Both options use the same loan amount and term so the quoted rates and upfront costs can be compared consistently.

Loan term
Compare these options against

Option A

Enter the note rate from this quote.

One point equals 1% of the loan amount. It does not imply a fixed rate reduction.

Upfront comparison cost —

Option B

Enter the note rate from this quote.

One point equals 1% of the loan amount. It does not imply a fixed rate reduction.

Upfront comparison cost —

How long might you keep this mortgage?

Holding period

This comparison uses 5 years. It is not a prediction of how long you will keep the loan.

Advanced options

This comparison is for cash-paid points with the same loan amount. Financed points that change principal are not compared here.

Monthly payment comparison

Enter both note rates to compare these options

Applying updates the shared purchase rate and the selected points or credit line. It does not happen automatically.

How this estimate works

One equals 1% of the shared loan amount. A point does not correspond to a fixed interest-rate reduction.

You supply the quoted rates and upfront costs. USMI compares those quotes and does not create or predict the rate reduction.

Both options use the same and term so the comparison stays consistent.

Break-even compares Option B’s extra upfront cost with the unrounded monthly payment reduction.

Cash-flow and debt-inclusive results answer different questions. Remaining mortgage balance can change the comparison before the extra upfront cost is recovered through payments.

The result is an estimate, not a recommendation to choose either quote.

Sources and definitions

Official sources

Points and credits
CFPB points and lender credits

Key terms

Estimate cash to close