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Mortgage Points Calculator (Break-Even)
Compute the break-even point on buying discount points for a lower mortgage rate. Includes after-tax break-even calculation.
FINANCECompute the break-even time on buying discount points to lower your mortgage rate. Shows monthly payment savings, upfront cost, before-tax and after-tax break-even, and lifetime savings if held to maturity.
1 point = 1% of loan amount, paid at closing. Typical rate reduction: 0.20-0.30 percentage points per point. Points are tax-deductible in the year paid for a primary residence purchase; amortized over loan term for a refinance. Compare loan estimates with and without points using the APR field, not just the rate.
Disclaimer: Average US mortgage holder keeps a loan 5-7 years. A break-even longer than your expected stay means points lose money.
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Frequently Asked Questions
What is the Mortgage Points Calculator (Break-Even) for?
Compute the break-even time on buying discount points to lower your mortgage rate. Shows monthly payment savings, upfront cost, before-tax and after-tax break-even, and lifetime savings if held to maturity.
How do I use the Mortgage Points Calculator (Break-Even)?
1 point = 1% of loan amount, paid at closing. Typical rate reduction: 0.20-0.30 percentage points per point. Points are tax-deductible in the year paid for a primary residence purchase; amortized over loan term for a refinance. Compare loan estimates with and without points using the APR field, not just the rate.
How accurate are my mortgage points (break-even) results?
Average US mortgage holder keeps a loan 5-7 years. A break-even longer than your expected stay means points lose money.
Is the Mortgage Points Calculator (Break-Even) free to use?
Yes - every calculator on WhichCalc is completely free with no signup, no usage limits, and no tracking on the calculation itself. Results display instantly in your browser and your inputs are never sent to a server. Bookmark the page if you use this calculator regularly.
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