Mortgage Points Buydown Calculator
See if Paying Points on Your Loan Actually Saves You Money
Mortgage points can sound like a smart move, but only if the math works in your favor.
Use this interactive Mortgage Points Buydown Calculator to compare your monthly payments with and without discount points.
You’ll instantly see:
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How much buying points costs upfront
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Your monthly payment difference
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How long it takes to break even
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Whether the long-term savings make sense for your goals
This tool was created by Kevin Peterson, a San Mateo Realtor who believes in data-driven decisions (and protecting your wallet).
If you’re buying or refinancing anywhere in the Bay Area, this will give you clarity before you lock in your rate.
How It Works
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Enter your loan amount (it’ll format automatically like $X,XXX,XXX).
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Add your loan term (e.g., 30 years).
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Enter your interest rate with and without points.
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See your break-even period instantly.
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Need help reading the results?
Scroll down for a quick explanation of when buying points is actually worth it.
When Do Mortgage Points Make Sense?
Mortgage points make the most sense when you:
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Plan to stay in the home long enough to reach your break-even point
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Have extra cash upfront and want lower monthly payments
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Expect interest rates to rise or stay flat for several years
If you plan to sell or refinance soon, buying points may not pay off.
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That’s why this calculator shows you exactly how long it takes to recover the upfront cost — before you write the check.
FAQ
Q: What are mortgage points?
Mortgage points are upfront fees you pay to your lender (typically 1% of your loan amount) in exchange for a lower interest rate.
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Q: How much does one point usually lower my rate?
Usually about 0.25%, but it varies by lender and market conditions.
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Q: When is it not worth it to buy points?
If you plan to move or refinance within the first few years - before you hit your break-even point - you probably won’t recoup the cost.
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Q: Does this calculator work for refinances too?
Yes. Plug in your refinance numbers to compare your current rate with a discounted one.
