Mortgage Points Calculator
Calculate if buying mortgage points saves money. Break-even analysis. Free points calculator.
How Mortgage Points Work
One point = 1% of loan amount, typically reduces rate by 0.25%. On a $350K loan: 1 point costs $3,500 and saves ~$60/month. Break-even: $3,500 / $60 = 58 months (4.8 years). Stay longer than 5 years and points save money. Move sooner and you lose.
When to Buy Points
Buy when: you plan to stay 7+ years, have extra closing cash, and rates are high. Skip when: you might move within 5 years, need cash for repairs, or could invest the money elsewhere. Points are tax-deductible for primary residences, reducing effective cost by your tax bracket (22-37%).
Mortgage points are tax-deductible for primary residences. At a 24% bracket, a $3,500 point effectively costs $2,660 after the tax benefit — shortening break-even by 25%.
