Mortgage Discount Points Calculator

Decide whether to buy down your mortgage rate with discount points.

Loan amount ($)

Base rate (%)

Buy-down rate (%)

Cost to buy down ($)

Loan term

Monthly savings

$133

Break-even

5.01 yr (60 mo)

Lifetime savings

$39,858

$/1% buy-down

$16,000

Buy down — break-even at 60.2 months is well before a likely move/sale.

Monthly base

$2,661

Monthly buy-down

$2,528

Interest saved (term)

$47,858

Net vs. points cost

$39,858

Estimates only — actual points cost varies by lender and is usually expressed as a percent of loan (1 point = 1% of loan). Talk to a loan officer before locking.

About this tool

Type your loan amount, base rate, points rate (rate after discount points), points cost, and expected tenure. Get the monthly savings, break-even months, lifetime savings, and a yes/no verdict for typical holding windows (5/7/10 yrs). The r/Mortgages and r/personalfinance 'should I pay points' classic.

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