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Mortgage Points Calculator

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Compare points cost to payment savings and find break-even months.

  • 100% Free
  • No signup
  • Private & secure
  • Instant results
  • On your device

Private on your device

Your information stays on your device and is not uploaded.

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Calculate the upfront cost of discount points, the new monthly payment, monthly savings, and how many months to break even.

Mortgage points trade cash today for lower payments tomorrow. Break-even analysis prevents buying down a rate you will not hold long enough to recoup—common when relocating within a few years.

Tax deductibility of points depends on use and timing; consult a tax professional rather than treating points as automatically deductible in the year paid.

Compare the effective rate after points with lender credits that increase rate but reduce closing cash. Sometimes a no-point loan wins on total cost for short horizons.

How to use this tool

Enter loan amount, term, current rate, points purchased, cost per point, and the new rate after points.

Worked example

Buying 1 point ($3,000) to drop from 6.75% to 6.5% on a $300,000 30-year loan typically saves ~$50/month, breaking even in about 60 months.

When to use this

  • Deciding whether to buy down a rate at closing.
  • Comparing lender quotes that mix points and credits differently.
  • Estimating hold period needed to justify discount points.

Common mistakes

  • Using break-even years longer than your realistic home tenure.
  • Forgetting points cost in break-even when financed into the loan.
  • Ignoring opportunity cost of cash used for points versus investments.

How it works

Compares the upfront cost of mortgage points to the monthly payment reduction, and estimates break-even months.

Limitations

Estimates only for educational purposes. Not financial, tax, or legal advice. Verify figures with your lender, advisor, or official IRS/SSA sources before making decisions.

Privacy and file handling

Your data stays on your device and is not uploaded.

FAQ

Frequently asked questions

What is a mortgage point?

Typically one point equals 1% of the loan amount paid upfront to reduce the interest rate.

How is break-even calculated?

Upfront points cost divided by monthly payment savings, rounded up to whole months.

Is Mortgage Points Calculator free to use?

Yes. Utilnivo tools are free to use and do not require an account.

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