Mortgage Points and Rate Buydown Calculator
Compare cash at closing, monthly principal and interest, and the cost of keeping each loan. Enter the actual rates offered by your lender.
Five-, seven-, ten-year and full-term comparison
Financing cost = interest paid + upfront costs. Equivalently, it is cash paid + remaining payoff balance minus the original loan amount. Lower financing cost is better under these assumptions. Negative savings means that quote costs more than the base quote.
| Horizon / month | Quote | Upfront cost | Cash paid including closing | Remaining balance | Financing cost | Savings vs base |
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Horizons beyond the loan term use the final payment month. Common closing costs are included in all options; points are added and usable credits are subtracted.
Points, lender credits and break-even
Discount points generally exchange more cash at closing for a lower interest rate. Lender credits generally offset closing costs in exchange for a higher rate. The rate change per point varies by lender and loan; this calculator does not infer it. Compare actual Loan Estimates.
Payment-savings break-even is the first month when cumulative lower payments recover the upfront points cost. Financing-cost break-even also accounts for different principal balances, using interest plus upfront cost. The credit advantage is exhausted when the credit quote's extra interest reaches its upfront credit. Month zero means the options are already equal or favorable at closing; "Not within term" means no crossing occurs before payoff.
Model assumptions
This is a permanent rate buydown for fully amortizing fixed-rate loans with identical principal and term. Points and closing costs are paid in cash, not financed. Payments occur monthly; nominal annual interest rates are divided by 12. Calculations retain precision until display, so lender cent-rounding schedules may differ slightly. The last payment clears the balance.
Temporary 2-1 or 3-2-1 buydowns, adjustable rates, extra payments, prepaid escrows, prepayment penalties, different origination fees, opportunity costs, tax deductions and discounted cash flows are excluded. Credits are assumed fully usable against eligible costs, not received as cash. This is a scenario estimate, not a loan offer or recommendation.
Source: CFPB explanation of discount points and lender credits. Reviewed October 2, 2026.