Free Mortgage Points Calculator
Free mortgage points calculator: break-even on discount points vs lower rate. US home loans. No signup.
Last updated 2026-05-28 · Davi Baptista
How it works
Free mortgage points calculator from Fynvorax. See break-even timing and lifetime savings when buying discount points to lower your rate.
Mortgage discount points are upfront fees paid at closing to reduce your interest rate for the life of the loan. One point usually costs 1% of the loan amount and often lowers the rate by about 0.25%. Buying points makes sense when you expect to keep the mortgage long enough for monthly savings to exceed the upfront cost. This calculator estimates your break-even period and net lifetime savings.
Discount points vs higher rate
Mortgage discount points are upfront fees paid at closing to buy down your interest rate—typically one point equals 1% of the loan amount.
Break-even is months of payment savings until the upfront cost is recovered. If you sell or refinance before break-even, points were a net loss.
Points may be tax-deductible in the year paid when they buy down a primary residence loan—confirm with a tax pro; we do not model individual tax outcomes.
Compare against investing the cash instead, and run mortgage payment on the loan calculator with and without points before you lock.
Who this calculator is for
This free US calculator is built for searches such as mortgage points calculator, discount points break even. Enter your numbers, compare scenarios, and use the results as an educational starting point—not tax, legal, or lending advice.
Related calculators in this topic
- Rent vs Buy Calculator
- Mortgage Affordability Calculator
- Loan Amortization Calculator
- HELOC Payment Calculator
Frequently asked questions
What are mortgage discount points?
Discount points are upfront fees paid directly to the lender at closing in exchange for a permanently reduced interest rate on your loan. They are essentially prepaid long-term interest.
What if I refinance or sell the home early?
Selling or refinancing before reaching the break-even years means you lose money because the upfront cost paid to get the lower rate was higher than the interest saved.
How long to break even on mortgage points?
Months ≈ points cost ÷ monthly payment savings. If one point costs $3,000 and saves $55/month, ~55 months.
Are mortgage points tax deductible?
Often as prepaid interest on purchase loans (U.S.) subject to limits; rules vary — confirm with a tax pro.