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Mortgage Points Calculator

See whether a lower mortgage rate is worth the upfront cost for the time you expect to keep the loan.

Use your lender’s quote. Points are an upfront cost for a lower rate.

1 · Your loan

Mortgage amountRate without pointsLoan term in years

2 · The lender’s points quote

Number of pointsUse the point count on your lender’s quote.Cost of each point (% of loan)Enter 1 for a standard point: 1% of the loan amount.Rate drop per pointEnter the drop in percentage points, not the new rate. From 6.5% to 6.25% for one point means 0.25.

3 · Your timeline and cash

Years you expect to keep this loanUntil you sell, refinance or pay off this loan.Return if you keep the upfront cashAnnual return on that cash and payment savings. Enter 0 for no investment growth.

Points and rate reductions vary by lender and day. This model compares principal-and-interest cash flow, remaining mortgage balance, and the entered alternative return on the points cash. Taxes, insurance, deductions, closing costs, and financed points are excluded.

READY WHEN YOU ARE—

Review the inputs, then select Calculate.

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Mortgage Points Calculator

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