Should I pay points for a lower interest rate? Loan Information Loan Amount ($) Length of Loan (Yrs) Interest Rate without Points (%) Interest Rate with Points (%) Additional Information Points Annual Savings Rate (%) Results Monthly Payment without Points: $851.68 Monthly Payment with Points: $1,048.82 Monthly Savings: $-197.14 Cost of Points: $1,500.00 Savings Rate of Return 5.00% Monthly Income from Investment: $6.25 True Monthly Savings: $-203.39 Breakeven Point: -1 Year(s) 4 Month(s) Instructions This calculator figures the breakeven point for the points to be paid. This is the time it would take for the savings of lower monthly payments to make up for the upfront point(s) paid. It would then depend on how long you intend to stay at your home or what your monthly payment requirements are in order to decide whether or not to pay the point(s). Disclaimer: We cannot guarantee the accuracy of this calculator. You should check with your finance provider before entering into any contracts.