Mortgage Points Calculator
Compare mortgage payments with and without discount points and estimate the break-even period.
| Mortgage Details | Enter Value |
|---|---|
| Loan amount ($) | |
| Rate without points (%) | |
| Rate with points (%) | |
| Points paid | |
| Loan term (years) |
Enter values to compare mortgage points.
How to Use the Mortgage Points Calculator
Enter the loan amount, interest-rate reduction, cost of points and expected time in the home to estimate whether buying discount points may break even.
Practical Example
If points cost USD 4,000 and reduce the monthly payment by USD 100, the simple break-even period is about 40 months.
Factors That Affect the Result
Loan size, point pricing, rate reduction, closing costs, refinancing plans and how long you keep the mortgage can change the value of points.
Frequently Asked Questions
What is a mortgage point?
A discount point is an upfront fee paid to reduce the mortgage interest rate.
How is break-even calculated?
Divide the upfront point cost by estimated monthly savings.
Are points always worthwhile?
No. They generally make more sense when you keep the loan long enough to recover the upfront cost.