Points vs. Rate Break-Even Calculator

Cost of points divided by the monthly savings equals the break-even in months. Keep the loan past that point and points pay off; sell or refinance before it and you lost money. It's a two-minute calculation on a big balance.

They can be, because both the cost and the monthly savings scale with the balance — but so does the risk if you don't hold the loan. Run your realistic holding horizon against the break-even before deciding.

Compare returns: points buy a guaranteed rate savings with a break-even; a bigger down payment lowers the balance and may drop mortgage insurance; keeping cash preserves liquidity. The right answer depends on horizon and how tight your reserve is.

Not how long you'll own the home — how long until you sell or refinance. Many Eastside buyers refinance or move within 5–7 years, which often lands before a points break-even. Be honest, because rates and life both change.

Usually no. If a refinance is plausible before the break-even, points you paid now are wasted. Weigh the likelihood of refinancing against the break-even months before buying down the rate.

It depends on your horizon, reserve, and whether the loan is jumbo. Run points, a bigger down payment, and a later refinance side by side in a Real Estate Review to place the cash where it returns most.