MORTGAGE / BREAK-EVEN
Compare the upfront cost of discount points with the monthly payment reduction and estimate how long the loan must remain open to break even.
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Point cost is one percent of principal per point. Nirmion calculates payments before and after the assumed rate reduction and divides cost by monthly saving.
Point cost = loan x points percent; break-even months = point cost / monthly payment reduction.
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What you receive
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Actual point pricing, rate reduction, taxes, deductions, refinance, prepayment, and sale timing vary by lender and jurisdiction.
This is an educational planning estimate. Confirm lender, issuer, tax, accounting, and contractual rules with the relevant provider or qualified adviser before acting.