Discount Points are an optional upfront fee paid to the lender at closing to reduce the note rate over loan life. One point typically reduces the rate by 0.25%, but the conversion varies by program and lender appetite. Math comparison: monthly payment savings × intended holding period vs the upfront cost. Breakeven typically falls in the 3-5 year range; for investor loans held to flip exit, points rarely justify themselves. For long-hold DSCR rentals, the math can pencil.
Costs & Fees