Buying discount points (or mortgage points) means paying extra cash at the time of closing to reduce the interest rate and monthly payments. Another option would be to use that money towards a larger down payments, reducing the loan amount. Which option makes the most sense? Use this calculator to find out how long it will take to recuperate the cost for buying points called the breakeven.
2 points will require a payment of
$2,300
You would break even in
105 months
These calculations are tools for learning more about the mortgage process and do not constitute an offer or approval of credit.
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1 point(s) will require a payment of
$2,000
You would breakeven in
105 months
If you plan to move or refinance sooner than the breakeven date, consider putting the money towards a larger down payment.
Monthly Payment
with points: $926
with points: $926
Monthly Payment without points: $983