Should I buy points?
Buying points means paying more at closing for a lower interest rate. Enter the two rates you were quoted and the cost, and you’ll see how long it takes for the lower payment to earn that money back.
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Loan term
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One point costs 1% of the loan amount.
Enter your loan amount, both rates and the number of points to see your break-even point.
Break-even point
0months
If you keep the loan
Do points make sense for you?
The break-even point is only part of the answer. Here’s what I’d look at with you:
- How long will you really keep this loan? If rates drop and you refinance in two years, points you paid at closing may never pay off.
- Would that cash do more somewhere else? The same money could lower your loan amount, cover closing costs or stay in your savings.
- Could the seller pay for them? A seller credit can often go toward points, which changes the math in your favor.
I’ll run your options side by side so you can see which one actually saves you the most.
This calculator is an educational tool. Results are estimates based on the numbers you enter and compare principal and interest payments only. They don’t account for taxes, investment returns or differences in how fast the loan balance goes down. This isn’t an offer of credit or a quote of any rate, points or terms. Not a commitment to lend. All loans subject to credit and underwriting approval. Restrictions apply. Fiona Bryan, NMLS #1812932, Empire Home Loans.