Pricing decision
Mortgage-points breakeven calculator
Calculate how many months of principal-and-interest savings are needed to recover the cost of discount points.
Planning estimate
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How this estimate works
One point equals 1% of the loan amount. Simple breakeven divides added upfront cost by monthly principal-and-interest savings. It excludes time value of money, tax effects and differences in remaining balance.
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Before you act on the result
This tool is educational and does not evaluate credit, income documentation, assets, reserves, property eligibility, program limits or current pricing. It is not an approval, rate quote, commitment to lend or Loan Estimate. Use current lender terms and verified property information for a real decision.
Frequently asked questions
What is one mortgage point?
One point generally equals 1% of the loan amount, although the rate reduction it buys changes with market pricing.
What if I refinance before breakeven?
The unrecovered cost generally makes the points strategy less favorable.
Should lender credits be analyzed the same way?
Yes, in reverse: compare the higher rate and payment with the cash saved at closing over the expected loan life.
Accuracy and licensing noteProgram details vary by borrower, property, location and date. Confirm current LMCU terms, property-state availability, licensing and eligibility before making a financing decision. All loans are subject to credit and property approval.
A clear next step
Your situation deserves more than a generic answer.
Talk through the numbers, timing and tradeoffs with Matt before you commit.