 TITLE: How to Buy Points on a VA Loan CONTENT: How to Calculate VA Mortgage Points\n-----------------------------------\nThe cost of a discount point is typically 1% of the loan amount, and it buys down the rate by 0.25%. So, let's say you have a $300,000 loan with a 3.5% fixed interest rate. With a 30-year mortgage, your monthly payment would be $1,347.\nNow, if you wanted to purchase one point, it'd cost you $3,000, and it would reduce your rate to 3.25%. To find out if it's worth it, you'd need to determine the monthly payment at the lower interest rate, which is $1,306. Then, you'd divide the cost of the point by the difference between the monthly payments.\nIn this scenario, that would be $3,000 divided by $41, which gives you a break-even point of about 73 months. In other words, you'd need to remain in the home and not refinance for a little more than six years to make buying the point worth it.\nNow, let's say you only want to purchase half a point. That would cost you $1,500, and it would reduce your rate to 3.375%. The difference in monthly payments with this option would be $21, and your break-even point would be about 71½ months. END