Calculator 09 of 09
Discount Points & Buy-Down Calculator
What buying the rate down costs, what it saves monthly, and how long you must keep the loan to profit.
Every figure produced here is illustrative and set for demonstration. Nothing on this page is a quote or an offer.
01The buy-down
$4,680 at closing
Month 61
When the points pay for themselves
5 yr 1 mo
Rate without points6.750%
Rate with points6.500%
Cost at closing$4,680
Payment without$3,035.44
Payment with$2,958.08
Saved each month$77.36
Net position after 7 years$1,818
Keeping the loan 7 years turns $4,680 into $1,818 of net saving.
02Cumulative cost, with the points counted
Assumptions on this page
- One point is one percent of the loan amount, paid at closing.
- The rate reduction each point buys is an input, not a market quote — it moves with pricing, the programme and the day.
- Break-even ignores what the same cash would earn if you kept it, and any tax treatment.
- Most loans do not run their full term. Refinancing or selling before break-even makes points a loss.
Every rate, fee and figure here is illustrative and set for demonstration. Nothing on this page is a quote, an offer, a commitment to lend, or tax advice.