Mortgage Points Calculator — Should You Buy Down Your Rate?

Calculate whether paying points to lower your mortgage rate makes financial sense for your situation.

Quick answer: Mortgage points trade upfront cash for a lower interest rate. Points make sense when the monthly savings break even before you sell, refinance, or pay off the loan.

Break-Even (months)

30 months

Break-Even (months)

30 months

Cost of Points

$4,000

Monthly Payment Savings

$131

Total Savings Over Loan Term

$43,286

Side-by-side comparison

Cost of Points: $4,000Monthly Payment Savings: $131Break-Even (months): 30 monthsTotal Savings Over Loan Term: $43,286

Diagnostic

The differential is $131 between these options.

Small rate or term differences compound. Don't leave the gap on the table.

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What to do next

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Your action plan

1
Compare the leading option against your current setup
Should you pay discount points to buy down your mortgage rate?
2
Pressure-test one alternate scenario before deciding
Assumptions change the answer, especially when rates, taxes, or timing matter.
3
Save the result to Money Map or use the linked next action
Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

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Guide

HELOC vs Home Equity Loan vs Cash-Out Refi: Which Home Equity Strategy Wins?HELOC: variable rate, flexible draw. Home equity loan: fixed rate, lump sum. Cash-out refi: replaces your mortgage with a larger one. Here's how to choose the right home equity strategy in 2026.

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About mortgage rates

Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates — your actual rate will vary.

For a personalized rate comparison, use the tool below to see lenders ranked by APR, loan type, and your profile.

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Mortgage rates shown on SwitchWize compare pages include loan type, assumed FICO, LTV, and points. Representative only — verify all terms directly with the lender. Advertising disclosure

Frequently Asked Questions

Everything you need to know.

Are mortgage points tax deductible?

Yes — mortgage points paid on a purchase loan are typically fully deductible in the year paid (if you itemize). Points paid on a refinance must be deducted over the life of the loan. Consult a tax advisor for your specific situation.

When do mortgage points make financial sense?

When you plan to keep the mortgage longer than the break-even period, have cash to spare after down payment and emergency fund, and do not plan to refinance soon. Avoid points in high-rate environments where refinancing in 2–3 years is likely.

Is the Mortgage Points Calculator — Should You Buy Down Your Rate? free to use?

Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.

Does using the Mortgage Points Calculator — Should You Buy Down Your Rate? affect my credit score?

No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.

Are the results personalized financial advice?

No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.

What should I do after seeing the result?

Use the recommendation module on this page to compare mortgage rates, or run Money Map to compare this home & mortgage decision with your other opportunities.

How does SwitchWize choose related offers?

Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.

How fresh are the rates and offers shown?

Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.

Where can I see the ranking methodology?

The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.

Can Money Map use this result?

Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

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.