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Buyer's Guidechevron_rightGlossary

Discount points

In plain English

Money you pay up front at closing to lower your interest rate. One point costs 1% of the loan amount.

By David Knorr · Last reviewed October 28, 2026

Why it matters to you

Points only pay off if you keep the loan long enough to earn back what you paid. Divide the cost by the monthly saving to find how many months that takes.

calculateOn a $300,000 loan, one point costs $3,000. If it saves $60 a month, you break even after 50 months, just over four years.
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infoGeneral information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice.