Points
Calculate the break-even point for paying discount points to reduce your mortgage interest rate.
Strategic Insights
Paying 1 Discount Point(s) costs $5,000.00 upfront but lowers your rate to 6.75%.
This is essentially "prepaying" interest to secure a lower monthly payment. The strategy works best for those planning to keep the mortgage beyond the 60 month break-even mark.
60
Months to Recoup Upfront Cost
*If you plan to stay in your home for more than 5 years, paying points generally saves you more interest over time.
Disclosure
This calculator is provided for illustrative purposes only and the results are based on the information you provide. Estimated monthly payments are only an estimate and do not include additional factors such as mortgage insurance, property taxes, or fees. Financial decisions should not be based solely upon the results of this calculator.