Mortgage Points Calculator 2026: How Many Should You Buy?
⚡ QUICK ANSWER — MORTGAGE POINTS
- 💰 1 point costs: 1% of loan ($4,000 on a $400K loan)
- 📉 Rate reduction: ~0.25% per point (varies by lender)
- 💵 Monthly savings: ~$67/month on $400K at today's rates
- 📅 Break-even: ~5 years (60 months) in most scenarios
- ✅ Worth it if: staying 7+ years and have the cash
Mortgage points (also called discount points) let you buy down your interest rate at closing. With 2026 rates at 6.4%, buying 2 points could drop you to 5.9% — saving $201/month on a $600K loan. But is it worth the upfront cost? Here's the exact math.
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Important: Before buying points, always shop 3+ lenders first. Some lenders have a lower base rate that beats another lender's discounted rate — and you'd save the points cost entirely.
Points on a Mortgage — How They Work
paid upfront at closing
(0.125–0.375%, varies)
current 2026 rates
Break-Even Table: Is It Worth It? (2026 Rates)
Based on current 30-year fixed rate of 6.40%, 0.25% reduction per point.
| Loan Amount | Points | Point Cost | New Rate | Monthly Savings | Break-Even |
|---|---|---|---|---|---|
| $200,000 | 1 pt | $2,000 | 6.15% | $34/mo | 4.9 yrs |
| $300,000 | 1 pt | $3,000 | 6.15% | $50/mo | 5.0 yrs |
| $400,000 | 1 pt | $4,000 | 6.15% | $67/mo | 5.0 yrs |
| $400,000 | 2 pts | $8,000 | 5.90% | $134/mo | 5.0 yrs |
| $600,000 | 1 pt | $6,000 | 6.15% | $100/mo | 5.0 yrs |
| $600,000 | 2 pts | $12,000 | 5.90% | $201/mo | 5.0 yrs |
Base rate: 6.40% (30-yr fixed, May 2026). Rate reduction: 0.25% per point. Use the calculator for your exact numbers.
Should You Buy Mortgage Points in 2026?
✅ BUY POINTS when…
- ✓Staying in the home 7+ years
- ✓Have extra cash after down payment + reserves
- ✓Want the lowest possible monthly payment
- ✓Rate difference is meaningful (0.25%+ per point)
- ✓Can't shop a better base rate elsewhere
❌ SKIP POINTS when…
- ✗Selling or refinancing within 5 years
- ✗Cash is tight (need reserves)
- ✗Buying in a declining rate environment (refinance soon)
- ✗Better to use cash for larger down payment (eliminates PMI)
- ✗Lender's effective rate-per-point is below 0.125%
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Enter your loan amount, rate, and points — see exactly when you break even and total lifetime savings. Free, no login.
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How to Get the Most Value from Points
Shop your base rate first
Get quotes from 3+ lenders WITHOUT buying points. A lender with a 6.25% base rate beats another lender's 6.15% "discounted" rate after buying 1 point — and you save $4,000.
Ask the lender for the rate-per-point
Not all lenders give 0.25% per point. Some offer 0.125% (not worth it), others offer 0.375% (excellent). Always ask: "What rate do I get for 0, 1, and 2 points?" and compare.
Calculate your exact break-even
Use our free mortgage point calculator. Factor in whether you'll refinance before break-even if rates drop. At 2026 rates, many experts predict a refi opportunity in 2027-2028.
Consider the tax deduction
Points on a home purchase are deductible the year paid (if itemizing). On a 32% tax bracket: $4,000 in points = $1,280 tax savings = effective cost of $2,720. This shortens your break-even by ~17 months.
Mortgage Points FAQ
How much is a mortgage point?
How many mortgage points can I buy?
How much does a mortgage point cost and reduce the rate?
Are mortgage points worth it in 2026?
What is the difference between points on a mortgage vs origination fees?
How do I calculate the break-even on mortgage points?
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