Mortgage Points Calculator
Weigh paying points at closing against a lower rate — enter loan size, base rate, points, and rate buydown to see break-even timing. Click any i for detail.
Rate buydown
Loan amount ($)
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Loan amount
Mortgage principal for the buydown math. |
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|---|---|
Base rate (%)
i
Base rate
Par rate without paying points. |
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Points paid
i
Points
Discount points as percent of loan (1 point = 1%). |
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Rate buydown (%)
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Buydown
How much the rate drops when you pay points. |
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Loan term (years)
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Term
Amortization used for payment comparison. |
How to use this calculator
- Enter loan amount and rates.
- Set points and buydown.
- Read break-even months and payment delta.
Results explained
Headline is months to recover points cost from P&I savings alone — staying past break-even matters.
Quick reference: mortgage points
Simple break-even frame.
| Item | Detail |
|---|---|
| Points cost | Loan × points % |
| Break-even | Points cost ÷ monthly savings |
Tax treatment and APR quotes from lenders may differ.
How the estimate is built
Points cost = loan × (points ÷ 100). Monthly savings = PMT(base) − PMT(buydown). Break-even = ceil(cost ÷ savings).
Example scenario
One point ($3,200 on $320k) that cuts rate 0.25% might save ~$50/mo — break-even near 64 months if you keep the loan.
FAQ
Are points always worth it?
Only if you keep the loan past break-even and the rate buydown is real.
Seller-paid points?
Cash flow differs — this model assumes you pay upfront.
APR vs note rate?
We compare note rates and payments, not disclosed APR.