Quick answer: On an $850,000 Morrison 80465 home with 20% down, 1.5 discount points cost $10,200. If they cut Freddie Mac's 7.24% average to 6.74%, principal and interest drop about $228 a month, so the points pay for themselves near month 45. Keep the loan longer than that and points can pay off.
By Katerina Veteskova, Colorado real estate broker license FA.100082955, eXp Realty, LLC
Discount points are prepaid interest. You pay more at closing, and the lender gives you a lower rate for the life of the loan. The only real question is whether you will keep the loan long enough to earn the cost back.
The math below assumes an $850,000 purchase, $170,000 down and a $680,000 loan on a 30-year fixed rate. I treat 7.24%, the Freddie Mac PMMS average as of October 29, 2026, down from 7.32% a week earlier, as the zero-point rate. Payments are principal and interest only, from my own arithmetic.
What does one discount point cost on an $850,000 Morrison 80465 home?
About $6,800 per point on a $680,000 loan.
The CFPB explains that one point equals 1% of the loan amount, not the price, and that points do not have to be whole numbers. On this loan that works out to:
- 0.75 point: $5,100
- 1 point: $6,800
- 1.5 points: $10,200
Points show up on page 2, Section A of your Loan Estimate, and by law they must be tied to a lower rate. An $850,000 price fits the Morrison $700K to $1M search, and the zipcode has its own 80465 Morrison homes from $700K search.
How much lower is the payment with points at 7.24%?
About $115 a month for 0.75 point and about $228 a month for 1.5 points, in this example.
How far a point moves the rate depends on the lender, the loan and the market, so no one can promise a fixed trade. For a scale, I used the ratio in the CFPB's own example, where 0.375 point bought a rate 0.125 lower. At that same ratio:
- Zero points at 7.24%: about $4,634 a month
- 0.75 point ($5,100) at 6.99%: about $4,519 a month
- 1.5 points ($10,200) at 6.74%: about $4,406 a month
This is an illustration, not a quote. Your lender's rate sheet sets the real price of each step down.
Get new Morrison homes from $700K
Email me new Morrison listings from $700,000 as soon as they hit the market, so I can compare points and no-points quotes before I write an offer.
When do mortgage points break even on a Morrison purchase?
Near month 45, or about 3.7 years, for both options in this example.
Divide the cost by the monthly savings: $10,200 / $228 is about 45 months, and $5,100 / $115 is also about 45 months, because both steps use the same ratio. Here is where 1.5 points leaves you, ignoring what the cash could earn elsewhere:
- Sell or refinance after 3 years: about $1,983 behind
- Keep the loan 5 years: about $3,494 ahead
- Keep it 10 years: about $17,189 ahead
- Keep it the full 30 years: about $71,966 ahead
If rates fall and you refinance in year two, the points are mostly lost. That is the main risk.
Can a Morrison seller pay for your points?
Yes, within Fannie Mae's concession limits.
Under Fannie Mae's interested party rules, a seller-funded permanent buydown counts as a financing concession. With 20% down, an 80% loan-to-value, the limit for a home you will live in is 6% of the lower of price or appraised value, or up to $51,000 here. The concession also cannot exceed your actual closing costs.
The full $10,200 for 1.5 points is 1.2% of the price. Redfin put the 80465 median sale price at $749,780 for the three months ending September 2026, with homes selling at about 99.6% of list in about 35 days, so ask for the credit inside your offer rather than after inspection.
Are discount points tax deductible?
Often, if you itemize and the loan buys your main home.
IRS Topic 504 says points paid to buy your main home can be deducted in the year you pay them when the tests are met, including that you bring at least that much cash to closing. Points the seller pays are treated as paid by you, but they lower your cost basis in the home. Treat this as general information and not as advice on your own return.
Should you pay points on a Morrison 80465 loan?
Pay them only if you expect to keep the loan well past month 45.
Paying points makes more sense if:
- You expect to stay put and keep this loan for 5 years or more
- The seller will fund the points as a concession
- You still have a cash cushion after closing
Skipping points makes more sense if:
- You may sell or move within about 4 years
- You plan to refinance if rates fall
- The cash would cut a larger loan or cover repairs
The $680,000 loan also sits under the FHFA 2026 conforming limit of $862,500 in Jefferson County, with about $182,500 of room.
Which Morrison and nearby searches fit an $850,000 budget?
Start with Morrison homes from $700K or the 80465 Morrison homes from $700K search, and check Morrison homes from $1.2M if a seller credit stretches the budget.
Nearby, compare 80123 Littleton homes from $700K, Littleton $700K to $1M, 80226 Lakewood homes from $700K, Lakewood $700K to $1M, 80401 Golden homes from $700K and Golden $700K to $1M. For attached homes, try Jefferson County townhomes and condos from $700K, or widen out with the Front Range $700K to $1M search.
Broker view: "Before a buyer pays points, I ask the lender for two quotes on the same day, one with zero points and one with points, and we work out the break-even month together. If the seller is willing to give a credit, putting it toward points can lower the payment for as long as you keep the loan." - Katerina Veteskova, eXp Realty, LLC
What this guide does not cover: lender credits, temporary buydowns, ARM pricing, FHA, VA, CHFA and jumbo rules, refinance costs, mortgage insurance, property tax, homeowners insurance and HOA or metro district dues. Ask a tax professional about deducting points on your own return.
Sources: Freddie Mac PMMS, 30-year fixed average of 7.24% for the week of October 29, 2026. CFPB, How should I use lender credits and points. Fannie Mae Selling Guide B3-4.1-02. IRS Topic 504, Home mortgage points. FHFA 2026 conforming limit list, Jefferson County row. Redfin 80465 zipcode housing market page, three months ending September 2026, checked October 30, 2026. The monthly payment, break-even and net figures are my own math from those inputs.
Weighing points on a Morrison purchase? Call or text 720-646-4685, or request a tour.
Frequently asked questions
How much does one mortgage point cost on a Morrison home?
One point is 1% of the loan amount. On a $680,000 loan, the 20% down loan on an $850,000 home, one point costs $6,800 and 1.5 points cost $10,200.
How long does it take for points to pay off?
In this example, about 45 months. Paying $10,200 to cut the rate from 7.24% to 6.74% saves about $228 a month, so the cost is recovered in about 3.7 years.
Can the seller pay for my discount points?
Yes, as a financing concession. With 20% down on a conventional loan, Fannie Mae allows seller-paid costs up to 6% of the price, as long as the total does not exceed your actual closing costs.
Are mortgage points tax deductible?
They can be. The IRS lets you deduct points on a loan to buy your main home in the year you pay them if you itemize and meet its tests. Ask a tax professional about your own return.
Katerina Veteskova is a Colorado real estate broker (license FA.100082955) with eXp Realty, LLC. Call or text 720-646-4685, or request a tour.