Calculate mortgage points for real estate investments and properties
Enter loan amount, base rate, points cost, and reduced rate. The calculator shows upfront cost of points vs long-term interest savings and breakeven timeline.
Pay $6,000 (2 points) on a $300,000 loan to reduce rate from 6.5% to 6.0%. Break even in 34 months if you keep the loan.
If you plan to keep loan longer than breakeven period (typically 2-4 years) and have cash available, points can save money long-term.
Typically 0.25% per point, but varies by lender and market. Shop around - some lenders offer better deals than others.
Yes for primary residence purchase if you meet IRS requirements. For refinances, deduct over life of loan. Consult tax professional.