How it works
Points cost = initial loan × points percentage; break-even is cost divided by monthly payment savings.
Worked calculation
Compare 6.5% and 6% mortgage offers using 1.5 points. For the sample inputs, the calculator displays these results:
| Original monthly P&I | $1,896.20 |
|---|---|
| New monthly P&I | $1,798.65 |
| Monthly difference | $97.55 |
| Upfront cost | $4,500.00 |
| Simple break-even | 46.129 months |
Assumptions and limitations
Compare lender quotes and APR; simple break-even excludes opportunity cost and refinancing.
Results update as you change inputs. The example figures are illustrative and do not represent current lender quotes or live rates. For important decisions, confirm the applicable terms with an authoritative source.
Further reading and source context
For background and independently maintained guidance, see CFPB loan estimate resources. This source supplies context rather than personalized verification of the calculator output.