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Mortgage Points vs. Higher Rate Calculator
Paying points buys a lower rate for cash up front. This calculator shows your monthly savings and the break-even point — so you know whether points are worth it for how long you'll keep the loan.
Points make sense if you'll keep the loan past the break-even point. If you might sell or refinance sooner, the up-front cost may not pay off.
Estimates for educational purposes only — not a pre-qualification, pre-approval, loan offer, or quoted rate. Actual figures depend on a lender's review of your full application. Rates and local costs are illustrative and change over time.
When points pay off
Buying points (prepaid interest) lowers your rate and monthly payment, but costs money at closing. The key number is the break-even month: the up-front cost divided by your monthly savings. Keep the loan past that point and you come out ahead; sell or refinance sooner and you likely don't.
Because most people move or refinance within several years, points aren't always worth it — run your real numbers and compare the break-even to how long you realistically expect to keep the loan.
A calculator shows the payment. It won't tell you if you're actually ready. Find out when you can realistically buy — a free 2-minute check scores your credit, income, savings, debt, and documents, then shows the one thing to fix first. No signup to start, no credit check.
Find out when you can buy →Frequently asked questions
What is a mortgage point?
One point costs 1% of the loan amount and typically lowers your rate by roughly 0.25% (varies by lender). It's prepaid interest — you pay up front to save monthly.
Are points worth it?
Only if you keep the loan past the break-even month (up-front cost ÷ monthly savings). Longer holds favor points; shorter holds usually don't.
Is this a quote?
No — it's an educational estimate. Your actual rate, points, and costs come from a lender.