Mortgage Points Calculator
Estimate whether buying mortgage points can lower your payment enough to be worth the upfront cost.
Mortgage Points Calculator
Compare the upfront cost against your long-term timeline.
Loan Baseline
Points Strategy
Your Timeline
The Break-Even Point
(5.0 years) to recover the $3,000 cost.
Timeline Verdict: 10 Years
Because you plan to stay for 10 years, you will cross the break-even point and save a net total of $3,014 after recovering your upfront cost.
Buy Down With Confidence
Mortgage points let you pay more at closing in exchange for a lower interest rate.
A mortgage points calculator helps you compare the upfront cost with monthly savings, so you can see how long it may take to break even and whether buying points fits your homeownership timeline.
Points Cost
One mortgage point usually costs 1% of the loan amount.
On a $300,000 loan, one point would cost about $3,000 upfront.
Rate Buydown
Discount points may lower your interest rate.
A lower rate can reduce your monthly payment and total interest, but the savings depend on the lender, loan size, rate reduction, and how long you keep the mortgage.
Break-Even
The break-even point shows when your monthly savings recover the upfront cost.
If points cost $4,000 and save $100 per month, the break-even point is about 40 months.
Cash Check
Points increase your upfront closing cost.
Before buying points, make sure you still have enough cash for down payment, closing costs, moving, repairs, and emergency savings.
When Points Help
Buying points may make sense if you plan to keep the home or loan long enough to pass the break-even point.
They may not be worth it if you expect to sell, refinance, or pay off the loan soon.
Key Inputs
For a clear estimate, enter:
- Loan amount
- Base rate
- New rate
- Number of points
- Cost per point
- Loan term
- Monthly savings
- Time you plan to keep
Smart Compare
Use the calculator to compare:
- No points vs. one point
- Lower rate vs. higher upfront cost
- Monthly savings vs. cash needed
- Break-even time
- Total interest saved
- Refinance or selling timeline
Points Planning Note
A mortgage points calculator helps you decide whether paying more upfront is worth the lower monthly payment. By comparing points cost, rate reduction, break-even time, and long-term savings, you can choose the loan option that fits both your cash today and your plans for the home.
Quick Answers
How much does a mortgage point cost?
One mortgage point typically costs 1% of your total loan amount. For example, if your loan is $300,000, one point will cost $3,000 upfront at closing.
How much does one point lower my interest rate?
It depends on the lender and the market, but generally, one discount point lowers your interest rate by 0.25%.
What is the break-even point for mortgage points?
The break-even point is the number of months it takes for your monthly payment savings to equal the upfront cost of the points. You calculate it by dividing the cost of the points by your monthly savings.
When is it a bad idea to buy mortgage points?
It is generally not worth buying points if you plan to sell the home or refinance the loan before you reach the break-even point, as you will lose money overall.