Loan Points Calculator
Compare discount points options and find your break-even point.
Loan Details
Points Options
Option A (No Points)
Option B
Option C
Option A
Points
0
Cost
$0
Interest Rate
7.250%
Monthly Payment
$2,183
Option B
Points
1
Cost
$3,200
Interest Rate
7.000%
-0.25% from base
Monthly Payment
$2,129
Monthly Savings$54
Break-Even5.0 years
Savings in 7 yrs$1,336
Lifetime Savings$16,239
Option C
Points
2
Cost
$6,400
Interest Rate
6.750%
-0.5% from base
Monthly Payment
$2,076
Monthly Savings$107
Break-Even5.0 years
Savings in 7 yrs$2,626
Lifetime Savings$32,282
Best Option Analysis
Best for 7-year hold
Option C
Saves $2,626
Option A$0
Option B$1,336
Option C$2,626
Understanding Points
What are points? Each point costs 1% of your loan amount and typically reduces your rate by 0.25%.
Break-even: The time it takes for monthly savings to recoup the upfront cost of points.
When to buy points:
- You plan to keep the loan longer than break-even
- You have extra cash at closing
- You want lower monthly payments
When to skip points:
- You might refinance or sell soon
- You need cash for other purposes
- Break-even exceeds your hold period