Mortgage Points Calculator — Should You Buy Down Your Rate?
Calculate whether paying points to lower your mortgage rate makes financial sense for your situation.
The differential is $167 between these options.
Small rate or term differences compound. Don't leave the gap on the table.
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Coach Insight
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.
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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