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Mortgage Points Calculator

Is buying down your rate with points worth it?

Enter your values

ⓘ Live results

Results
Break-even
60.8 months (5.1 years)
Cost of points
$7,000.00
Monthly saving
$115.08
Lifetime interest saved
$34,429.93

Working

  1. 1$7,000.00 / $115.08 = 60.8 months

Quick answer

Each discount point costs 1% of the loan and typically cuts the rate about 0.25%. Break-even is the point cost divided by monthly savings.

break-even months = point cost / monthly payment saving

How to use the Mortgage Points Calculator

  1. 1Enter the loan amount and the two rates you have been quoted.
  2. 2Enter how many points the lower rate costs.
  3. 3Buy points only if you will hold the loan past break-even.

Worked example

Using the values the calculator loads with:

Inputs

  • Loan amount350000 $
  • Rate without points6.75 %
  • Rate with points6.25 %
  • Points purchased2
  • Term30 years

Results

  • Break-even60.8 months (5.1 years)
  • Cost of points$7,000.00
  • Monthly saving$115.08
  • Lifetime interest saved$34,429.93
  1. $7,000.00 / $115.08 = 60.8 months

Frequently asked questions

Are points tax deductible?

Points on a primary residence purchase are often deductible in the US; confirm with a tax professional.

What if I refinance early?

You lose the remaining benefit, so short expected holds argue against points.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.