NMLS #139369
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.
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