Mortgage Points Calculator
Mortgage Points Calculator
Determine if buying discount points is worth the upfront cost. Find your breakeven date.
Loan Details
Points & Rates
Typically 1 point = 1% of loan amount ($4,000)
Breakeven Period
0.0 Years
(0 Months)
You need to stay in the home for at least 0.0 years to recover the upfront cost of $4,000.
Monthly Savings
Standard Payment$0.00
Lowered Payment$0.00
Monthly Savings+$0.00
Projected Net Savings (10 Years)
Should I Buy Mortgage Points?
"Points" (or discount points) are fees paid directly to the lender at closing in exchange for a reduced interest rate. One point typically costs 1% of your mortgage amount and lowers your interest rate by 0.25%, though this varies.
The Breakeven Analysis
The most important factor is the Breakeven Point. This is the time it takes for your monthly savings to exceed the upfront cost of the points.
- Keep the house for a long time? Buying points often makes sense because you'll enjoy the savings for years after the breakeven date.
- Planning to move or refinance soon? Buying points usually loses money because you won't recoup the upfront cost before you pay off the loan.