Mortgage Points Calculator
Estimate if buying mortgage discount points makes financial sense by comparing upfront cost, monthly savings, and break-even time.
How to Use
- Enter your loan amount and points purchased.
- Enter monthly payment with and without points.
- Click Calculate to see break-even months.
If you are comparing overall home affordability, use the Mortgage Affordability Calculator.
How Break-Even Works
Buying points is an upfront cost to reduce monthly payments. You break even when cumulative monthly savings equals the points cost. If you expect to move or refinance before that date, points may not pay off.
When Buying Points Can Make Sense
- Long-term ownership plans: Staying in the home longer increases the chance of net savings.
- Stable fixed-rate loans: Predictable payment periods make break-even planning easier.
- Cash available at closing: Points require higher upfront cash outlay.
FAQ
What is one mortgage point?
One point typically equals 1% of the loan amount paid upfront to lower your interest rate.
Does this calculator include taxes and insurance?
No. It compares principal-and-interest payment differences only, based on your provided numbers.
Can I use this for refinance decisions?
Yes. Enter refinance payment values with and without points to estimate break-even timing.
