Finance · Mortgage
Mortgage Points
Compare no-points vs points scenarios with monthly savings, break-even timing, and horizon net savings.
Last reviewed: February 18, 2026
Guided Flow
Next steps
Directory
Browse calculators
Open the full directory to continue your planning path.
Compare
Compare two homes
Evaluate two options side-by-side before deciding.
Guide
Read guides
Get practical explainers for common homeowner decisions.
What this calculator does
Compare no-points vs points scenarios with monthly savings, break-even timing, and horizon net savings.
How it's calculated
- Inputs are validated before running the calculator-specific compute() function.
- Core math is deterministic and implemented in src/lib/calculators/mortgage-points.ts.
- Results are recalculated instantly as values change and are shareable via query parameters.
- Disclosure assumptions and limitations are shown on-page for decision context.
Example
Example scenario: Loan amount = 500000 USD; Rate without points = 6.75 %; Rate with points = 6.5 %; Points cost = 1 % of loan. Sample output: Monthly payment savings from points: $82.65
Common mistakes
- Using optimistic rates or appreciation assumptions without testing a conservative case.
- Ignoring taxes, insurance, HOA, or maintenance in monthly cost planning.
- Treating modeled outputs as guaranteed quotes rather than planning estimates.
- Not comparing at least two scenarios before making a financing decision.
- Skipping professional review for legal, tax, underwriting, or insurance details.
FAQs
What is one mortgage point?
One point usually equals 1% of the loan amount paid upfront to reduce the note rate.
Why can points be a poor fit for short stays?
If you sell or refinance before break-even, you may not recover the upfront points cost.
Does this model taxes or deduction effects?
No. It compares direct payment math only and does not include tax treatment.
What if rates change later?
This comparison assumes fixed rates and no future refinance, so real outcomes may differ.
Can lender credits be compared with this?
Not directly. Credits are the inverse tradeoff and should be compared in a separate quote analysis.