Mortgage Points Break-Even Calculator

Buying mortgage discount points lowers your interest rate in exchange for an upfront fee. Each point costs 1% of the loan amount and typically reduces your rate by 0.25%. Use this calculator to find your break-even month — the point at which your monthly savings exceed what you paid upfront.

How Discount Points Work

One discount point on a $400,000 loan costs $4,000 and reduces your interest rate by roughly 0.25%, lowering your monthly payment. If that saves you $80/month, your break-even is 50 months. If you plan to stay in the home longer than that, buying points saves you money in the long run.

When Buying Points Makes Sense

Points are most beneficial when you plan to stay in the home past the break-even date, when you have extra cash at closing, and when you prefer a lower monthly payment over time.

Contact Secure Choice Lending at (951) 733-8925 or info@securechoicelending.com. NMLS #1689518.