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Mortgage Points Break-Even Worksheet
$9.99Compare up to three real point quotes side by side — what each costs, what it saves monthly, when it breaks even, and which one genuinely costs least across the years you'll actually keep the loan.
Format: Excel (.xlsx)
Look inside
Preview only — scroll to read it. The file you download is fully editable.
| Mortgage Points Break-Even Worksheet | ||||
| Compare up to three real quotes side by side — the same loan with different amounts of discount points. Fill in the blue cells in each Option column using what your lender actually quoted; don't rely on a rule of thumb. One point normally costs 1% of the loan amount and buys roughly 0.25% off the ra… | ||||
| Option A | Option B | Option C | Notes | |
| The loan (same across all three options) | ||||
| Loan amount | 350000 | ƒx | ƒx | Enter once in the Option A column — the other options reference it automatically. |
| Loan term (years) | 30 | ƒx | ƒx | |
| What each option costs and what rate it buys | ||||
| Points purchased | 0 | 1 | 2 | Option A is normally your zero-point baseline — leave it at 0 so the other options have something to be measured against. |
| Interest rate quoted (%) | 6.9 | 6.65 | 6.4 | The actual rate the lender quoted for that number of points — not an estimate. |
| Cost of the points | ƒx | ƒx | ƒx | Points × loan amount × 1%. If your lender prices points differently, overwrite this cell with their real dollar figure. |
| Monthly principal & interest | ƒx | ƒx | ƒx | |
| Break-even vs. the Option A baseline | ||||
| Monthly saving vs. Option A | ƒx | ƒx | ƒx | |
| Extra cost vs. Option A | ƒx | ƒx | ƒx | |
| Months to break even | ƒx | ƒx | ƒx | Extra cost ÷ monthly saving. Option A shows "—" because it is the baseline being compared against. |
| The question that decides it | ||||
| How many years will you keep this loan? | 0 | Until you sell OR refinance — either one ends the loan. Points bought and not yet recovered are simply lost at that point. | ||
| Worth it? | ƒx | ƒx | ƒx | |
| Total cost over the years you keep it | ƒx | ƒx | ƒx | Points paid up front plus every monthly payment across the years above. The lowest number in this row is the option that actually costs you least — this is the bottom line. |
| Points are only ever worth buying if you keep the loan long enough to recover their cost. Refinancing later ends the loan just as surely as selling does — a rate drop two years from now can wipe out points you paid today. If you are unsure how long you'll stay, that uncertainty itself argues for few… | ||||
| Notes | ||||
This template is general information, not financial, legal, or tax advice.