Rate Editorial · 2026-09-10 · September 10, 2026
Discount points are an upfront charge that may reduce the interest rate. Lender credits can offset closing costs in exchange for different pricing. Compare both your cash at closing and your monthly payment.
Divide the extra upfront cost by the monthly payment savings to estimate a simple break-even period. This ignores time value of money, refinancing and other costs. Use actual Loan Estimates for your decision.
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