Translate points into dollars
One point is 1% of the loan amount. On a $340,000 loan, one point costs $3,400. There is no universal rule that a point buys a particular rate reduction; enter the lender’s actual quote for both the rate and points.
Use the time horizon that matters to you
If one otherwise comparable offer costs $3,400 more upfront and reduces the monthly payment by $50, the simple cash-flow break-even is 68 months. That shortcut ignores balance differences and opportunity cost. Comparing both offers at your expected holding period gives a more useful picture.
Keep credits and fees separate
Lender credits reduce upfront costs and may come with a higher quoted rate. HomeMathKit limits credits to the modeled closing fees and points, so they do not create a negative fee or fund the down payment. Prepaids remain a separate cash requirement. Check your actual Loan Estimate for eligibility and adjustments.
Make the comparison reproducible
Name each saved plan after the offer date or a neutral label rather than personal information. Keep the same home price and expected holding period. Review the monthly payment, required cash and horizon cost together; the smallest one of those numbers is not automatically the best choice.
Source references: CFPB: Lender credits and discount points
Sources checked 2026-09-11. Educational software; no professional review claimed.
Educational information, not personalized advice. See the model assumptions and limitations.