Calculate discount points cost, reduced payment, monthly savings, total interest savings and break-even period to decide whether buying down your mortgage rate makes sense.
Enter the loan amount, base rate, reduced rate and points paid to see whether buying down the mortgage rate is worth it.
| Scenario | Points cost | Monthly savings | Break-even | Hold savings |
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| Year | Cumulative savings | Net after points | Status |
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This calculator measures whether paying discount points to lower your mortgage rate is worth the upfront cost. It compares monthly payment savings, break-even timing and total interest savings against the amount paid for points.
Buying points can reduce the interest rate, but the upfront cost only makes sense if you keep the loan long enough. Break-even timing is usually the most important decision metric.
Use realistic expected hold period assumptions. If you think you may refinance or sell before break-even, paying points may not make sense. If you plan to hold the loan much longer than break-even, the buydown can become more compelling.