When is buying points worth it?

Only if you stay in the home past the break-even point. If the break-even is 60 months and you plan to move in 5 years, it's not worth it. If you're staying 30 years, points can save tens of thousands.

Are mortgage points tax deductible?

Points paid on a primary residence purchase are generally deductible in the year paid (subject to IRS rules and income limits). Refinance points must be deducted over the loan term. Consult a tax advisor.

Mortgage Points Calculator — Is Buying Points Worth It?

Mortgage discount points let you pay upfront to lower your interest rate — typically 1 point costs 1% of the loan amount and reduces the rate by 0.25%. This calculator tells you how long it takes to break even on that upfront cost and how much you save over the life of the loan. It's only worth it if you plan to stay in the home past the break-even point.

Loan Amount ($)

Rate WITHOUT Points (%)

Rate WITH Points (%)

Total Points Cost ($)

Frequently Asked Questions

One discount point costs 1% of the loan amount and typically reduces your interest rate by 0.25% (though this varies by lender). On a $400,000 loan, 1 point costs $4,000.

Related Calculators

💰Mortgage Calculator 💰Loan-to-Value Calculator 💰House Affordability Calculator