Mortgage Points vs No Points Calculator
Enter the loan, both rates and the points cost to see whether buying points pays off.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
Mortgage discount points let a borrower pay money upfront — typically 1 point = 1% of the loan amount — in exchange for a lower interest rate over the life of the loan. Whether that trade pays off depends on the break-even point: how many months of lower payments it takes for the accumulated savings to equal the upfront cost of the points, calculated as points cost ÷ monthly payment savings.
Homebuyers and people refinancing use this comparison to decide whether to buy down their rate or take the higher no-points rate, weighing the break-even timeline against how long they actually expect to keep the loan; loan officers use the same math to present the trade-off clearly to clients.
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