Mortgage Points Calculator

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Evaluate whether buying mortgage points is worth it. Compare upfront costs, interest rate reductions, and long-term savings based on your plans.

Last update Dec 2024
  • Scenario 1: No Point(s)
  • Scenario 2: With Point(s)
  • Which One Is Higher (%)

See your savings unfold: Compare total costs with and without mortgage points over time. Visualize breakeven points and understand the impact of staying or moving early.

# Years from Now
Try your numbers:

Enter total amount of the mortgage.

A =

Enter the base interest rate.

B =

Enter the total amount you would pay to buy points upfront.

C =

The total percentage reduction in the interest rate from buying points.

D =

Enter the duration of the mortgage (e.g., 15, 20, or 30 years).

E =
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  • Amount
    Any single amount ($).
  • Cash Flow
    Rent, insurance premium, salary, ...
  • Current Asset
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  • Installment Loan
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  • Percentage
    Any percentage value (%).
  • Years / Months
    Any time horizon.
  • Age
    Show "Age" instead of "# Years from Now."
  • Retirement Age (requires Age)
    Enable "Investment Return After Retirement."

Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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Not what you want?

How is Cash Value calculated?

Opting not to buy mortgage points keeps your interest rate, avoiding an upfront payment. While your monthly payments remain higher compared to the 'With Points' scenario, this option may be more cost-effective if you plan to move or refinance before the breakeven point. Over the loan term, you'll pay more in interest, but you avoid the risk of not recouping the upfront cost of points due to early relocation or refinancing.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

F =
0

Calculations

(Expressions are evaluated at every year.)

G̃ =
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  • Buy Asset
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  • Expect Monthly Cash Flow
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  • Define Variable (Numerical)
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Add Intermediate Calculation
  • Define Variable (Numerical)
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  • Define Variable (Cash Flow)
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