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The Mortgage Discount Points Calculator is based on discount points when purchased against a fixed rate mortgage

Discount points are purchased at 1% of the original principal amount

Buying 1 discount point reduces the annual interest rate by 0.25%

Discount points reduce the monthly payment, but the cost of the discount points has to be taken into consideration

The calculator below shows the break even point at which the saving on the monthly payment has equalled or surpassed the purchase cost of the points.

A comparison of the payment schedules is shown in a table below the calculator

Calculations can be saved to a table by clicking the "Add to table" button (table appears below the schedule comparison)

(The table appears the first time the button is clicked)

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