Mortgage Points Breakeven Calculator
Find out how long it takes for buying discount points to pay off and whether it makes sense for how long you plan to stay.
Loan Details
$400,000
50,0001,500,000
Interest Rates
6.75%
312
6.25%
312
Points
1 pt
0.254
auto
$
1 pt × $400,000 = $4,000
7 yrs
130
Results
Monthly payment without points
$2,594.39
At 6.75%
Monthly payment with points
$2,462.87
At 6.25%
Monthly savings
$131.52
Per month after buying points
Upfront point cost
$4,000
1 pt on $400,000
Breakeven point
31 months
2 years, 7 months
Net savings over 7 yrs
$7,048
After recouping point cost
Points pay off in 2 years, 7 months. You plan to stay 7 years. This is a good deal.