Mortgage Points Calculator
See whether buying mortgage points pays off. Compare the monthly payment with and without points, the upfront cost, and the break-even point in months.
- Monthly savings
- 97.55
- Points cost
- 6000
- Break-even (months)
- 62
How to use
- Enter the loan amount and the term in years.
- Enter the interest rate without points and the discounted rate with points.
- Enter how many points you plan to buy.
- Read the monthly savings, the upfront cost, and the break-even point in months.
Examples
- $300k, 6.5% → 6% for 2 points:
saves $97.55/mo, break-even 62 mo - 2 points on $300k:
costs $6,000 upfront
FAQ
- What is a mortgage point?
- One point equals 1% of the loan amount, paid upfront to lower your interest rate. On a $300,000 loan, one point costs $3,000.
- What is the break-even point?
- The number of months it takes for the monthly savings from the lower rate to repay the upfront cost of the points. If you keep the loan past that point, buying points pays off.
- Should I buy points?
- Buying points usually pays off only if you keep the mortgage longer than the break-even period. If you plan to sell or refinance sooner, the upfront cost may not be recovered.