How to evaluate discount points

Points can trade an upfront cost for a different interest rate. Ask for comparable offers with and without points.

Divide the added upfront cost by the monthly saving for a simple break-even estimate, then consider how long you expect to keep the loan. That estimate ignores time value and future changes.

Source and further reading — checked 2026-10-28.

Educational information only. LoanPilotAI is not a lender or broker. Estimates are not approval, personalized advice or an offer of credit.