Mortgage Points
Mortgage Points Calculator
Calculate whether buying mortgage points is worth it for your situation. See break-even analysis and long-term savings.
Loan Details
$
$
Points Information
%
pts
Each point typically reduces rate by 0.25%
Should You Buy Points?❌ NoBreak-even not reached
No Points
6.750%
$2,076/mo
With 0 Points
6.750%
$2,076/mo
Points Cost$0
Monthly Savings$0
Break-Even0 months
Total Cash Needed$80,000
30-Year Savings$0
Understanding Mortgage Points
Mortgage points (discount points) allow you to pay upfront to get a lower interest rate. This is called "buying down" your rate.
How Points Work
- 1 point = 1% of your loan amount
- Each point typically reduces rate by ~0.25%
- Paid at closing as part of your closing costs
- Can be negotiated with the lender
When Points Make Sense
Buying points isn't right for everyone. Consider points if:
Good Candidates
- Planning to stay in home long-term (5+ years)
- Have extra cash available at closing
- Want to lower monthly payment
- Rate is currently higher than desired
When to Avoid
- Planning to sell or refinance soon
- Short on cash for closing
- Breaking even takes too long