Mortgage Rate Comparison Calculator
Compare a mortgage rate with and without paying points to buy the rate down, and find the break-even time.
Compare Your Options And Get Clear Answers
Compare a mortgage rate with and without paying points to buy the rate down, and find the break-even time.
Mortgage Rate Comparison Estimator
Enter your numbers below for an instant estimate.
How It Works
Key concepts behind this calculator
Payment at Each Rate
Fixed-rate payment formula for each interest rate.
Cost of Points
Points × loan amount ÷ 100.
Break-Even
Cost of points ÷ monthly saving.
Use As A Guide
Results are estimates based on your inputs. Check real quotes, rates and professional advice before deciding.
Rate Buy-Down Guide
Typical effects of one discount point.
| Item | Typical Value | Meaning | Note |
|---|---|---|---|
| 1 point | 1% of loan | Cost upfront | Paid at closing |
| Rate reduction | About 0.25% | Per point | Varies by lender |
| Break-even | 4 – 7 years | Cost ÷ savings | Longer = better |
| Best when | Staying long | Not refinancing soon | Fixed-rate loans |
| Rule of Thumb | Stay > break-even | Compare lenders | Get written quotes |
Mortgage Rate Comparison Calculator FAQ
Answers to common questions about this calculator.
A fee equal to 1% of the loan paid upfront to lower the interest rate.
Divide the cost of points by the monthly saving. If you keep the loan longer than that, points pay off.
Often for tax purposes in some cases. Ask a tax adviser.
No. Use it as a guide.