Mortgage Rate Buydown Calculator
Calculate if paying points to lower your interest rate makes financial sense
Loan Information
Enter your mortgage details
Rate without buying down
Rate after buying down
How long do you plan to keep this mortgage?
Note: This calculator assumes 1 point (1% of loan amount) buys down the rate by 0.25%. Actual costs may vary by lender.
Buydown Recommended
$2,546
Total savings over 7 years
Buydown Cost
Rate Reduction0.500%
Upfront Cost$6,000
You'll pay $6,000 upfront to reduce your rate from 7.5% to 7.0%
Monthly Payment Comparison
Base Rate Payment$2,098
Buydown Rate Payment$1,996
Monthly Savings$102
Break-Even Analysis
Break-Even Point59 months (4.9 years)
Expected Time in Home7 years
✓ You'll break even in 4.9 years, which is 2.1 years before you plan to move.
Savings Summary
Upfront Cost-$6,000
Monthly Savings × 7 years+$8,568
Net Savings$2,546
Lifetime Interest Savings: $30,625 (if you keep the loan for the full term)
When to buy down your rate:
- • You plan to stay in the home longer than the break-even period
- • You want to lower your monthly payment
- • You have extra cash available at closing
- • You're close to a DTI limit and need a lower payment to qualify