Rate Buydown Calculator
Adjust your loan amount, select 1 or 2 discount points, and instantly see your upfront cost, new rate, monthly savings, and break-even timeline — all in real time.
Max 2 discount points to purchase — 1 point = 1% of loan = −0.25% rate reduction
All calculations, payment projections, and rate scenarios provided by this tool are hypothetical and intended solely for educational purposes and preliminary budgeting. These figures do not constitute a formal Loan Estimate, quote, pre-approval, commitment to lend, or rate lock guarantee pursuant to the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), or Equal Credit Opportunity Act (ECOA) regulations.
Actual loan qualification, annual percentage rates (APRs), down payment requirements, property tax assessments, homeowners insurance premiums, and private mortgage insurance (PMI) are determined exclusively through a formal underwriting evaluation of your verified credit, income, assets, and specific property valuation. For verified financing terms tailored to your exact scenario, please schedule a strategy session with the Rob Miller team.
How Discount Points Work
Paying discount points is essentially pre-paying interest. The upfront cost is fixed at closing; the savings accumulate every month for the life of your loan. The break-even point is the moment your monthly savings have repaid that upfront cost.
When Paying Points Makes Sense
Long-Term Residency
Your "forever home"? If you plan to keep the mortgage 7+ years, points almost always win.
Seller Credits
Negotiated a seller credit? Using it to buy down your rate is often the best use of those funds.
High-Rate Environments
A small buy-down can make the difference in qualifying for the home you want.
Fixed-Income Planning
Want the absolute lowest monthly payment to protect cash flow? Points lock that in permanently.
Points Limits by Loan Type
Typical maximums through Provisor and Wisconsin secondary market guidelines.
| Loan Type | Typical Max Points | Max Rate Reduction | Max Seller Concession |
|---|---|---|---|
| Conventional | 3 pts | −0.75% | 3–9% of price |
| FHA | 2 pts | −0.50% | Up to 6% of value |
| VA | 4 pts | −1.00% | 4% + closing costs |
Note: The calculator above caps at 2 points — the sweet spot for most Wisconsin purchase and refinance loans. Actual per-point pricing is set at the time of your Loan Estimate and varies with market conditions. Provisor does not publish a fixed rate sheet.
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