Should you buy points — or take a lender credit?
Points and credits are two sides of one trade. Pay cash today to lower your rate, or accept a higher rate to get cash back toward closing. Either way, the answer comes down to how long you’ll keep the loan. Pick a direction and this runs the break-even for you.
This calculator is an educational estimate, not a rate quote or loan offer. It compares principal and interest at the two rates you enter, measures the simple break-even (the upfront amount divided by the monthly payment difference), and shows the net result over the time you keep the loan. It does not account for the time value of money, taxes, or what the upfront cash could earn or cost elsewhere. Real point and credit pricing changes daily and depends on your full scenario. Forest Hills Mortgage · Matt Mergo, NMLS #563819. Equal Housing Lender.