TreatFlowFinancial Systems
Mortgage Rate Buydown Engine

Mortgage Points Calculator

Determine whether paying upfront discount points to buy down your mortgage interest rate saves money based on your exact breakeven timeline.

Loan & Buydown ParametersStep 1 of 2

Breakeven Horizon
61 months (5.1 yrs)
Worth It: You stay past the breakeven point
Upfront Points Cost
$6,000
Monthly Savings
+$98.91/mo
Base Monthly Payment (6.75%):$2,594.39
New Monthly Payment (6.375%):$2,495.48
Total Savings over 7 Years:$8,308.67
Net Profit After Upfront Cost:$2,308.67
Refinance Risk Alert

If market interest rates drop and you refinance your mortgage before reaching your 61-month breakeven date, you will lose the remaining value of your upfront points investment.

Mortgage Discount Points Breakeven Mathematics

Discount points represent an upfront capital investment that yields an annuity of monthly cash flow savings throughout your occupancy period.

1. Upfront Points Cost

Points Cost ($) = Loan Balance × (Points Purchased ÷ 100)
Reduced Interest Rate = Base Rate - (Points Purchased × Rate Reduction per Point)

2. Breakeven Period in Months

Monthly Savings ($) = Monthly Payment(Base Rate) - Monthly Payment(Reduced Rate)
Breakeven Months = Upfront Points Cost ÷ Monthly Savings

Frequently Asked Questions

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