What is a mortgage discount point?

One point costs 1% of the loan amount and is paid up front to lower your interest rate, usually by around 0.25% per point.

When is buying points worth it?

Buying points pays off if you keep the loan past the break-even point, where the monthly saving has covered the up-front cost. The calculator shows that point.

Does this send my numbers anywhere?

No. All calculations happen locally in your browser with no network requests.

Mortgage Points Calculator

Mortgage points calculator

Lenders let you pay discount points up front to lower your interest rate. One point costs 1% of the loan. This calculator works out the cost of the points, your reduced rate, the resulting monthly payment saving, and the break-even point where the saving has paid back the cost.

Buying points makes sense when you keep the loan well past break-even; if you might refinance or move sooner, the up-front cost may not be recovered. Everything stays in your browser.