Loan Assumptions
Your Scenario
$50K – $2M · $5,000 steps
2% – 12% · 0.125% steps
10 – 30 years
0 – 4 points · 1 pt = 1% of loan amount
Typical: 0.25% · Verify with your lender
Before sale / refinance / payoff
Rate Comparison
Base Rate
7.000%
$2,329 /mo
Bought-Down Rate
6.500%
$2,212 /mo
Monthly Impact
Points Cost
$7,000
paid at closing
Monthly Savings
+$117
P&I reduction
Net @ Your Stay Horizon
+$2,828
over 7 years · after recovering points cost
Lifetime Impact (Full Term)
Interest Saved
$42,120
Lifetime Net
+$35,120
Breakeven Timeline
vs full loan term
Points pay off 24 months before loan ends
Points are worth buying
Paying 2.000 points ($7,000) buys your rate down from 7.000% to 6.500%. You'll recover the cost in 60 months and, if you stay 7 years, net +$2,828 after closing costs. That's a 40% ROI on closing dollars — a solid financial move.
Assumes fixed-rate mortgage, no refinancing. Verify point-to-rate ratios with your lender — they vary by lender, credit profile, and market conditions. Not financial advice.