About this calculator
Paying points to buy down your mortgage rate can save tens of thousands of dollars — or cost you money if you move or refinance too soon. The Discount Points Analyzer gives borrowers and advisors a clear, data-driven answer before any commitment is made.
What it shows you
- Upfront cost vs. monthly savings from each point purchased
- Break-even month — when the savings exceed the cost
- Total net benefit at any future date
- Cash-flow and equity break-even, side by side
What you'll enter
- Purchase or refinance: price or property value, down payment, and loan amount
- Loan term and base rate
- How much each half point lowers the rate
- Whether you itemize deductions (optional tax modeling)
When to use it
- Your lender offers a lower rate in exchange for points
- Deciding between paying points and keeping the cash
- Checking how long you need to keep the loan for points to pay off
Why it matters
Most borrowers are told what a point costs but not whether buying it makes sense for them. Median U.S. homeowners stay in their home about 8 years — this tool shows exactly whether the break-even lands inside or outside that window.
Read the guide
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