On an $800,000 jumbo loan, 1 point costs $8,000 and typically saves $200 or more per month. The scale is different from conforming loans, but the math works the same way.
Jumbo loans have higher base rates than conforming loans, which means points can produce larger absolute savings. The break-even calculation remains the same: divide the point cost by the monthly savings. Patrick Kevin Fagan helps clients in San Antonio and the Texas Hill Country evaluate jumbo loan point purchases.
Jumbo Loan Math
Jumbo loans exceed the conforming loan limit. In most of Texas, that threshold is $766,550 for 2025. On a $800,000 jumbo loan, 1 point equals $8,000. The rate reduction is typically 0.25%, saving about $200-$250 per month. The break-even is around 32-40 months. Patrick Kevin Fagan explains jumbo loan pricing for buyers in greater San Antonio.
Cost Scale
The cost of points scales directly with the loan amount. A jumbo loan of $1.5 million means 1 point costs $15,000. The monthly savings at 0.25% rate reduction would be approximately $375-$450 per month. The break-even remains roughly the same range, but the upfront cash required is significantly higher. Patrick Kevin Fagan can model different jumbo loan scenarios.
Savings Scale
The dollar savings from points on jumbo loans are larger because the loan amount is larger. A 0.25% rate reduction on a $800,000 loan saves about $167 per month in interest alone. Over 5 years, that is $10,020 in total interest savings. Patrick Kevin Fagan helps San Antonio buyers run these numbers before committing to a point purchase.
