Test an earlier sale or refinance
Pay points for a lower rate with an uncertain holding period
Enter matched quotes with and without points. Compare the calculated break-even month with more than one holding period, including an earlier sale or refinance. Then review APR, other fees and cash reserves separately because the calculator isolates points and principal-and-interest savings.
Compare matched mortgage quotes
Use same-day matched quotes.
Enter the same loan term and amount.
Test a realistic holding period.
Compare the break-even month with your horizon
Break-even is the month cumulative entered payment savings equals points paid.
Mortgage Points Break-Even: Compare Cash Now With Interest Later covers the controlling document terms and questions outside this result.
Use same-day rate and points disclosures
- Same-day loan quotes for the same amount and term
- Rate and points shown on each written quote
- Other lender credits and fees kept outside this calculation
- A realistic period before sale or refinance
Mortgage costs outside the points calculation
- Other lender fees
- Tax treatment
- Refinance or sale costs
The cash-now-versus-payment-later question
Compare the cost of entered points with monthly principal-and-interest savings.