Discount Points
Upfront fees (1 point = 1% of loan amount) paid to the lender at closing in exchange for a lower interest rate. Common on DSCR loans to buy down rate by 0.125–0.500% per point.
Why it matters on a DSCR loan
Whether points make sense comes down to your hold period: divide the upfront cost by the monthly payment savings to find your breakeven month, and only buy down the rate if you'll keep the loan well past it. On DSCR deals, points can also serve a structural purpose — a slightly lower rate lowers PITIA, which can nudge a marginal file over the DSCR qualification line. If you expect to refinance or sell within a few years, taking par pricing or a lender credit usually wins.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).