Cost To Buy Down Points On A Mortgage ✓

: Each point is equal to 1% of your principal loan.

: One point generally reduces your interest rate by 0.25% (25 basis points), though this varies by lender. cost to buy down points on a mortgage

: You can usually buy fractional points (e.g., 0.5 points) or multiple points (e.g., 2.0 points). Calculating the "Break-Even" Point : Each point is equal to 1% of your principal loan