Mortgage Points Calculator
Calculate mortgage points from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate mortgage points from your own entered figures. Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
How to use the Mortgage Points Calculator
- Enter or select loan amount.
- Enter or select term (months).
- Enter or select rate without points (%).
- Enter or select points purchased.
- Enter or select rate with points (%).
- Read the calculated result; change any measurement to compare alternatives.
Formula
one point = 1% of the loan amount paid at closing; break-even months = points cost ÷ (payment without points − payment with points)
- loan
- Loan amount
- termMonths
- Term (months)
- rateWithout
- Rate without points (%)
- points
- Points purchased
- rateWith
- Rate with points (%)
Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
Worked example
For mortgage points calculator, the following measurements illustrate the exact method: Loan amount: 320000; Term (months): 360; Rate without points (%): 6.75; Points purchased: 1; Rate with points (%): 6.5.
Inputs
- Loan amount$320000
- Term (months)360
- Rate without points (%)6.75 %
- Points purchased1
- Rate with points (%)6.5 %
Result
- Cost of points$3,200.00
- Payment without points$2,075.51
- Payment with points$2,022.62
- Monthly saving$52.90
- Break-even (months)61
- Lifetime saving if held to term$15,842.64
Results explained
- Cost of points
- Cost of points from the formula above. Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
- Payment without points
- Payment without points from the formula above. Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
- Payment with points
- Payment with points from the formula above. Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
- Monthly saving
- Monthly saving from the formula above. Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
- Break-even (months)
- Break-even (months) from the formula above. Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
- Lifetime saving if held to term
- Lifetime saving if held to term from the formula above. Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
Frequently asked questions
one point = 1% of the loan amount paid at closing; break-even months = points cost ÷ (payment without points − payment with points)
Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.
No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.
This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.
Check period consistency, currency, percentage inputs and the assumptions: Points are prepaid interest: the buydown is permanent for the life of this loan but worthless if you refinance or sell before break-even. Taxes on points are not modeled.