Points Break-Even Calculator
Calculate if buying mortgage points is worth the cost
Loan Details
1 point = 1% of loan amount
How Points Work
- • 1 point = 1% of loan amount
- • Points are prepaid interest
- • Typically reduces rate by 0.25%
- • May be tax deductible
- • Best if you keep loan long-term
Points Analysis
Recommendation
Points May Be Worth It
Break-Even Point
60 months
(5.0 years)
Cost of Points
$4,000
Rate Reduction
0.250%
Monthly Savings
$67
Net Savings
5 Years:$9
10 Years:$4,018
Lifetime:$20,054
Payment Comparison
Without Points:$2,661/mo
With Points:$2,594/mo
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Editorial Note
MyCalcBuddy Editorial Team
This page is maintained as an educational calculator reference.
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Formula Source: Standard Mathematical References
by Various
🔄Last reviewed: May 2026
✓Formula checks are based on standard references and internal QA review.