Mortgage Points When You Refinance
Here is the 2026 view on mortgage points when you refinance — what moves them and when to lock.
What to know
Buying a discount point - 1% of your loan amount - lowers your refinance rate by roughly 0.25%. Points pay off only if you keep the loan past the break-even point where cumulative payment savings exceed the upfront cost. If you might refinance or sell again soon, skipping points usually makes more sense.
What affects your refinance rate
- Your credit score and loan-to-value
- Loan term (15-year prices below 30-year)
- Rate-and-term vs cash-out (cash-out prices higher)
- Discount points you choose to buy
- The bond market and Fed policy — and lender margins, so compare quotes
Example payment by rate
| Rate | P&I on a $300,000 loan (30-yr) |
|---|---|
| 5.25% | $1,657 |
| 5.50% | $1,703 |
| 5.75% | $1,751 |
| 6.00% | $1,799 |
| 6.25% | $1,847 |
| 6.50% | $1,896 |
| 6.75% | $1,946 |
Rates move daily. Join the free Refi Rate Guide alerts so you can lock when rates clear your break-even.
Your Free Refinance Rate Watch
Join the free Refi Rate Guide alert list — we watch rates, cash-out rules, and new programs so you do not have to.
Frequently Asked Questions
- Mortgage Points When You Refinance — the quick answer?
- Buying a discount point - 1% of your loan amount - lowers your refinance rate by roughly 0.25%. Points pay off only if you keep the loan past the break-even point where cumulative payment savings exceed the upfront cost. If you might refinance or sell again soon, skipping points usually makes more sense.
- Are refinance rates higher than purchase rates?
- Rate-and-term refinance rates are usually similar to purchase rates; cash-out refinances price a bit higher because they are riskier for the lender.