Mortgage Points Calculator
Enter loan amount, current rate, point cost (e.g. 1% of loan per point), and rate reduction per point. See break-even and total interest saved.
Points cost vs savings
Enter values to calculate.
How it works
Cost = loan × (point %/100). New rate = current rate − (points × reduction per point). We compute new payment and months to recover cost from payment savings.
When to use it
Use it to decide if buying points is worth it based on how long you plan to keep the loan.
Frequently asked questions
What is one point?
Typically 1% of the loan amount, paid at closing, to reduce the rate (often by ~0.25%).
Are points tax deductible?
Rules vary. Consult a tax professional.