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NorthStar Funding - NON-QM Mortgage Specialists

Rate Buydown ROI Calculator

Rate Buydown ROI Calculator

Should you pay points to buy down your interest rate? Calculate your break-even point and see the long-term return on investment.

Loan Details

Enter your loan information and buydown costs

Without buydown

After paying points

≈ 2.00 points on this loan

Monthly Payment Comparison

Base Rate (7.5%):$2,797
Bought-Down (6.75%):$2,594
Monthly Savings:$202
ROI Analysis
See when you'll recoup your investment and long-term returns

Break-Even Point

40 months

(3.3 years to recoup your $8,000 investment)

Return on Investment

5-Year Projection51.8% ROI
Total Savings: $12,148Net: $4,148
10-Year Projection203.7% ROI
Total Savings: $24,296Net: $16,296
Full Term (30 Years)811.1% ROI
Total Savings: $72,888Net: $64,888

Important: Refinancing Impact

If you refinance before the break-even point (3.3 years), you may not fully recoup your buydown investment. Consider your long-term plans before paying points.

This buydown could be a good investment if you plan to keep the loan 5+ years.

Save Your Analysis

Download a PDF to compare buydown options

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