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Should I Buy Points?
Compare the upfront cost of discount points with monthly payment savings and estimated break-even time. Enter the two rates you were actually quoted; this tool does not assume a fixed rate reduction per point.
Your quotes
Use the actual cost on your Loan Estimate.
Before selling or refinancing.
Comparison
Upfront points cost
$3,500
Monthly P&I savings
$86.55
Principal and interest only
P&I without points / mo
$2,270.09
P&I with points / mo
$2,183.54
Simple break-even
3 yr 5 mo
41 months = cost / monthly savings
Net over 7 years
$3,770
Savings minus points cost
Payment savings recover the points cost before you expect to sell or refinance.
Simple break-even ignores the time value of money, taxes, and any lender credits.
Let's put your numbers into perspective.
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Review My Numbers With ShelbyEducational estimates only, not a preapproval, loan offer, or credit decision. Actual costs and loan terms may differ.