Run the numbers on a purchase, refinance, home equity loan, or debt consolidation.
See whether paying discount points for a lower rate pays off before you sell or refinance.
One point costs 1% of the loan amount. Plan to sell or refinance before the break-even point and the points cost you more than they save.
Break-even point
5 yrs 1 mo
Cost of points
$6,000
Monthly savings
$99
Payment, no points
$2,594
Payment with points
$2,495
If you keep the loan 7 years, buying points saves you about $2,309 after their cost.
Principal and interest only. Compares payment savings with the up-front cost of points, without investment return on the cash spent.
* This estimate is provided for illustrative and informational purposes only and does not constitute a loan approval or commitment to lend. Actual rate, APR, and payment will depend on your credit profile, loan program, and market conditions at the time of rate lock. 1st 2nd Mortgage Co. of N.J., Inc. — NMLS # 115981.