When sellers offer concessions, one of the most effective uses can be buying down the buyer's rate. This mortgage points calculator shows what discount points cost, how much they lower the payment and the break-even month. It's useful when you're advising a buyer on how to use a seller credit, and when you're showing a seller how a concession can bring buyers back to a listing that's stalled.
They're worth it if the buyer keeps the loan longer than the break-even point, the month when cumulative payment savings exceed the cost of the points. If they're likely to sell or refinance sooner, points cost more than they save. When the seller pays for the points, the math is different, because the buyer isn't paying the cost.
Instead of a price cut, some sellers offer a credit toward a rate buydown. Put this calculator on the listing to show buyers the lower payment the credit could buy, which often matters to them more than a lower price.
Run the numbers with your buyer: the credit could cover closing costs or buy down the rate. The calculator shows the monthly saving and break-even, so the buyer can decide with their lender.
Builders often advertise rate buydowns. A points calculator helps buyers compare a buydown with a price reduction in terms they understand.
The buyer enters the loan amount, rate, term, number of discount points and the rate cut per point. They see the monthly saving, the cost of the points, the payment with and without points, the break-even month, the rate with points and the net savings over the full term.
The lead you receiveThe lead includes the Loan Amount, Discount Points, Cost of Points, Monthly Saving, Break-Even, Rate With Points and Net Savings Over Full Term. A buyer testing points is usually discussing a specific deal, and often a seller credit.
The seller's $8,000 credit could buy about two points. That drops your payment around $130 a month, and you'd break even in about five years if you were paying for the points yourself. Since the seller is paying, you keep the saving from day one.
The same figures your visitor sees arrive in your lead record. Here's how to read the ones that matter.
How much one point lowers the rate varies by lender and market. Use the lender's pricing for the 'rate cut per point' input, not a rule of thumb.
Loan programs limit how much a seller can contribute. Confirm the allowed amount with the buyer's lender before writing a buydown into an offer.
Discount points permanently lower the rate. A temporary buydown (such as a 2-1) lowers it for a year or two. This calculator models permanent points.
Loan Details
Discount Points
Field names are shown as they appear in the calculator's English interface.
Estimates only. Whether points pay off depends on the exact rate reduction offered and how long you keep the loan. Confirm point pricing with your lender.
Calculator results are estimates for illustration, not Loan Estimates, pre-approvals or offers of credit.
One discount point costs 1% of the loan amount. On a $350,000 loan, one point is $3,500. How much it lowers the rate depends on the lender's pricing.
Cost of points divided by the monthly saving, giving the number of months to recover the cost. The calculator also shows net savings over the full term after subtracting the cost.
No. It models permanent discount points. A temporary buydown lowers the payment for the first year or two only, so its value is the sum of those early savings.
Show the numbers, and let the buyer decide with their lender. Points suit buyers who expect to keep the loan beyond the break-even month. Buyers likely to move or refinance soon may prefer a credit toward closing costs.
Compare the seller's cost with its payment effect for buyers. A credit that buys down the rate often moves the payment more than the same amount off the price, which can bring stalled listings back into buyers' searches.
Within limits. Each loan program caps interested-party contributions as a percentage of price, depending on the down payment. The buyer's lender confirms the limit.
Yes. Set the loan amount and points defaults to the offer on the listing, so buyers see the effect immediately. Add a note about the credit's terms on your page.
Listings with seller credits, new-construction pages and articles about negotiating. It also works as the second tab next to the mortgage calculator.
Yes. Mortgage points runs in English and Spanish.
Included on every plan, including the free Agent plan. No card needed.