Finance Tools
Mortgage Points Break-Even Calculator
Calculate how long it takes to break even when you pay discount points to get a lower mortgage interest rate.
Discount points let you pay an upfront fee to get a lower interest rate. This calculator estimates monthly savings and how long it takes to break even.
How to use this mortgage points break-even calculator
- Enter your loan amount and term (years).
- Enter the interest rate without points and the interest rate with points.
- Enter how many points you would pay (1 point = 1% of the loan amount).
- Click Calculate to see monthly payments, monthly savings, and break-even time.
Example
Suppose you’re considering paying points to lower your mortgage rate.
- Loan amount: $300,000, term: 30 years
- Rate without points: 7.00%
- Rate with points: 6.50%
- Points paid: 1.5 points
- This tool estimates monthly savings and the break-even month.
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