Mortgage Points Break-Even Calculator
See how long it takes for discount points to pay for themselves, and whether they save money over the time you’ll keep the loan.
- Cost of points
- Payment without points
- Payment with points
- Monthly savings
- Net over your time frame
- Verdict
Point Options
Items you add are saved in this browser.
| Option | Points | Rate | Cost | Break-Even | Net | Remove |
|---|
Are Mortgage Points Worth It?
Discount points are prepaid interest: you pay a percentage of the loan up front for a lower rate. They pay off only if you keep the loan long enough for the lower payments to add up to more than you paid.
The page also compares the total cost over the years you expect to keep the loan, counting both the payments and the lower balance you'd owe at the end with the lower rate.
Worked Example
Tips
How much a point lowers the rate varies by lender and by day; compare Loan Estimates with and without points. People often sell or refinance sooner than they expect, so be realistic about how long you'll keep the loan. Points on a home purchase may be tax-deductible; ask a tax professional.