Mortgage points calculator
$
%
An example. Your lender sets the real rate.
years
%
From your lender's quote. What a point buys varies.
$
One point is 1% of the loan.
The points have paid for themselves by
Month 62
5 yr 2 mo of payments $52.32 lower · after 7 years you are $2,420 ahead, counting the lower balance
- Payment
- $2,022.62
- With points
- $1,970.30
- Lower by
- $52.32
- After 7 years
- $2,420
- Interest saved, full term
- $18,836
The month is the cost divided by the monthly saving. The figure after the years you entered also counts the slightly lower balance the lower rate leaves, which matters if you sell or refinance. It does not count what the cash could have earned elsewhere or done as a larger down payment, and it leaves out tax. The rates are your own figures. It does not say whether to pay points.