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Mortgage Points Calculator — Should You Buy Down Your Rate?
Calculate whether paying points to lower your mortgage rate makes financial sense for your situation.
Mortgage Points Details
$400,000
$
6.99%
%
6.49%
%
1
30
Results
LiveBreak-Even (months)
24
Cost of Points$4,000
Monthly Payment Savings$167
Total Savings Over Loan Term$56,000
Cost of Points$4,000
Monthly Payment Savings$167
Break-Even (months)24
How to use
Change one assumption at a time to see what moves the answer most.
Frequently Asked Questions
Everything you need to know.
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Why This Matters
Buying one point (1% of loan amount) typically reduces your rate by 0.25%. On a $400,000 loan, that's $4,000 upfront to save about $55/month. Break-even: 73 months. If you keep the loan 10+ years, it pays off handsomely. If you move in 5 years, you lose money.
How to Use It
- 1Enter loan amount and base interest rate
- 2Enter points cost and resulting rate reduction
- 3See your monthly savings and break-even timeline
- 4Decide based on how long you plan to keep the mortgage
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