Discount points, lender credits and buydowns, weighed on your own numbers
Financing points
Point made
On some loans, especially refinances, the cost of points can be added to the loan amount instead of paid in cash, subject to loan-to-value limits. Financing points means you pay interest on them too, so the break-even point arrives later. Run the numbers both ways before deciding.
Last reviewed against the primary sources listed below.
Questions to ask
- Can the points be financed on this loan?
- Does financing them change the loan-to-value band?
- What does the Loan Estimate show either way?
Points and credits, answered
Can you roll points into a refinance?
Often yes, within the loan's loan-to-value limit.
Does financing points change the break-even?
Yes, it pushes break-even later because you pay interest on the points.