Finance guide
Should You Buy Mortgage Points?
Estimate whether buying points can recover upfront cost within your expected ownership horizon.
Quick answer: Points may be preferable when monthly savings recover upfront cost before you sell or refinance.
Intent: are mortgage points worth it
How to run the numbers
- Enter loan amount and compare rates with and without points.
- Set a realistic holding horizon in years.
- Review break-even months and net savings at your horizon.
Common mistakes
- Short hold periods often fail to recover point costs.
- Assuming no refinance risk can overstate long-term benefit.
- Comparing only APR labels can hide cash requirements.
Calculators to open now
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Mortgage Points
Compare no-points vs points scenarios with monthly savings, break-even timing, and horizon net savings.
Finance / Mortgage
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FAQs
What is one mortgage point?
One point is typically 1% of the loan amount paid upfront to reduce the interest rate.
Can points be rolled into the loan?
Some programs allow financing points, but that changes payment and total interest math.
Are points tax deductible?
Tax treatment depends on your situation; confirm with a qualified tax professional.
This calculator provides planning estimates for educational purposes only. Verify all assumptions with licensed professionals before making financial, legal, tax, insurance, or construction decisions.
Want a sequence instead of a single tool? Open Start Here: Buying a Home.