Buying Points Down on a Mortgage Calculator

This comprehensive **buying points down on a mortgage calculator** helps you analyze the long-term financial impact of purchasing discount points (or "buying down" your interest rate) at closing. Determine your break-even point and maximize your savings.

Modify the values and click the Calculate button to use the calculator

Calculate the Cost and Savings of Buying Points Down

Use the inputs below to compare your loan scenario **without** buying points versus **with** buying points. The calculation is based on the assumption that 1 discount point costs 1% of the loan amount and reduces the interest rate by 0.25%.

1. Current Loan Details:
Total Loan Amount
Original Loan Term years
Initial Interest Rate (No Points)
2. Buying Points Down Options:
Discount Points Purchased
Closing Costs (Excl. Points)
Reduced Rate (Calculated)
 

Analysis: Break-Even in 4.5 Years

Based on the inputs (a $300,000 loan at 6.5% for 30 years, buying 2 points to drop the rate to 6.0%), here is the calculated financial impact:

Extra Upfront Cost
$6,000.00		 Break-Even Time
4 years, 6 months

Placeholder Chart Area

This is where a graph showing Cumulative Savings over time would render.
Scenario Initial Rate (6.50%) Reduced Rate (6.00%)
Monthly Payment (P&I) $1,896.20 $1,798.65
Monthly Savings --- $97.55
Total Interest Paid (Lifetime) $382,632.78 $347,513.78
Total Lifetime Savings --- $35,119.00
Total Upfront Cost $4,500.00 $10,500.00

View Amortization Comparison