📍 Mortgage Points Calculator
Compare two otherwise similar mortgage offers: one without discount points and one with a lower rate plus points. See how long it takes monthly payment savings to recover the upfront cost.
| Keep Loan For | Payment Savings | Net After Upfront Cost |
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What this comparison does and does not show
The calculator isolates principal-and-interest payment savings and compares them with the incremental upfront cost. It assumes the loan amount and term are the same. Taxes, insurance, escrow, mortgage insurance, tax deductibility, investment opportunity cost, and differences in unrelated lender fees are not modeled.
Use actual Loan Estimates
The CFPB explains that one point equals 1% of the loan amount, but the rate reduction per point is not fixed. Compare offers from the same day and make sure the loans have the same type, term, and features. Points should be tied to a discounted rate on the Loan Estimate and Closing Disclosure.
Official source: CFPB guidance on points and lender credits.