Mortgage Discount Points
Break-even point on buying down your rate.
Break-even at
5.0 yrs
$4,000 cost · saves $67/mo
Comparison
Base monthly payment$2,661
Payment after points$2,594
Lifetime net savings$20,054
One point usually costs 1% of the loan and shaves 0.25% off the rate (the default here). Worth it if you'll keep the loan past the break-even point. If you might refinance or move sooner, the upfront cost is lost. Most break-evens land around 5-7 years.
About
Enter loan amount, rate, term, and how many points you'd buy. Default is the standard 1 point = 1% of loan, dropping the rate by 0.25%. The tool shows monthly savings, upfront cost, break-even time, and lifetime savings.
How to use
- Enter loan and rate.
- Set points to buy.
- Read break-even time.
FAQ
How many points should I buy?+
It depends on how long you'll keep the loan. Most lenders cap at 4 points. The break-even is usually 5–7 years; if you might refinance or move sooner, the points are wasted.