If you’re searching for a home loan, you may have heard the term “mortgage points” come up a few times in conversation. These points, which you purchase at the time of closing, help homeowners get a better interest rate over the course of the loan.
You may be wondering if buying down the rate is even worth it, how much you can expect to save, and how many points you should consider purchasing. These questions are why we built this Mortgage Points Calculator. We have also included a list of expanded definitions and explanations at the bottom of the tool.