Less cash now
The zero-discount-point option avoids borrower-paid discount points. It can still have other closing costs. In some cases the tool uses an available lender-credit option for this side of the comparison.
Rate Horizon · Mortgage tools
Florida Mortgage Points Calculator
Should you pay more now for a lower rate? Compare a zero-discount-point option with the lowest rate costing up to one point. See when the lower payment may cover the extra cash due at closing.
Pricing source effective 10/26/2026. Not a rate lock.
Your scenario
Used for the position statement below the timeline.
Break-even on the discount points
60 months
About 5 years for the lower payment to recover the $6,331 of additional upfront cost. I usually look for a simple points payback in about two to three years (24–36 months). This example’s estimated 60 months is longer than that preference.
Conventional · zero discount points - rate7.000%
Conventional · zero discount points - APR7.046%
Points−0.306 · −$1,953
A negative figure is a lender credit toward closing costs.
Principal and interest$4,241
Repayment terms30-year fixed
30-year fixed · Approximately 360 monthly principal-and-interest payments of $4,241. This P&I amount excludes property taxes, homeowners insurance, HOA/CDD dues, flood insurance and other property-specific costs; your actual total monthly payment will be higher.
Estimated cash to close$224,778
Conventional · lower rate - rate6.750%
Conventional · lower rate - APR6.863%
Points0.694 · $4,422
More than zero and no more than the 1.000 discount-point cap.
Principal and interest$4,135
Repayment terms30-year fixed
30-year fixed · Approximately 360 monthly principal-and-interest payments of $4,135. This P&I amount excludes property taxes, homeowners insurance, HOA/CDD dues, flood insurance and other property-specific costs; your actual total monthly payment will be higher.
Estimated cash to close$231,110
Additional upfront cost of the lower rate$6,331
Monthly principal-and-interest saving$106
Break-even60 months · 5 years
Position after 5 years$58 ahead
Accumulated monthly saving minus the additional upfront cost, if you keep this loan.
Scenario$850,000 · 25.0% down
780–799 · Primary residence · Single-family · 30-year fixed · 30-day lock · Florida. Base loan $637,500. Approximately 360 monthly principal-and-interest payments.
Pricing10/26/2026
Pricing source effective 10/26/2026. Illustrative estimate. May change or be unavailable at commitment or closing · Not a rate lock.
See the timeline
| After | Net position |
|---|---|
| 2 years | $3,776 still to recover |
| 4 years | $1,220 still to recover |
| 6 years | $1,336 ahead |
| 8 years | $3,892 ahead |
| 10 years | $6,448 ahead |
Compare all three programs on /rates/
Illustrative estimate from the latest imported wholesale pricing. Not a rate lock, not a loan offer, and not a commitment to lend. Terms depend on verified borrower, property, program, lock and underwriting details.
What are mortgage points?
Discount points are fees you pay at closing for a lower interest rate. One point costs 1% of the loan amount. A point does not buy a fixed drop in rate. The cost and rate choices depend on the loan and market.
A lower rate
The other option uses the lowest available rate with more than zero and no more than one discount point. It may need more cash at closing. Check the full cash difference, not just the points line.
Your time frame
The lower payment needs time to cover the extra upfront cost. Think about when you may sell, pay off the loan or refinance. You may keep the home longer than you keep this loan.
Use the comparison in three steps
1. Set one loan scenario
Enter your loan details. Both options use the same scenario. Review the date and assumptions shown with the pricing.
2. Check both costs
Read the Rate, APR, points and payment for each option. Rate is the interest charged. APR is a yearly measure that includes interest and some loan fees. Also compare the cash due at closing.
3. Compare time and cash
Use the chart and table to see when the lower payments cover the extra cash. Try a shorter time frame. Keep enough cash for the rest of closing, repairs and savings.
Keep Florida home costs in your budget
The payment comparison here is principal and interest only. Taxes, home insurance, flood coverage, neighborhood dues and any mortgage insurance are separate budget items. Use costs for the actual property. A lower loan payment does not remove those bills.
Mortgage points questions
How does this calculate break-even?
It divides the extra estimated cash due at closing by the monthly principal-and-interest savings. It uses the unrounded amounts, then rounds up to a whole month. It assumes you keep the loan and its rate.
Does no points mean no closing costs?
No. Points are just one cost. A zero-point loan can still have title, loan and other charges. Review the full Loan Estimate.
Should I always choose the lowest rate?
No. Check the upfront cost, how long you expect to keep the loan and how much cash you need to keep. The lowest rate may not have the lowest cost over your time frame.
What if no break-even number is shown?
Read the reason shown by the tool. A comparison may be unavailable, or the lower rate may not have both a higher upfront cost and a lower payment. Missing current pricing is not a zero-month break-even.
Does this decide whether I should refinance?
No. This compares pricing options for one new loan. Use the refinance calculator to compare your current loan with a replacement.
Choose your next step.
- Compare Florida mortgage loan options
- Review Florida rate options
- Compare lender offers fairly
- Understand rates, APR and points
An estimate is a starting point. Loan terms and approval need a full review.
Other calculators
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Assumptions, method and disclosures
What this calculator assumed
- Florida property, single-family residence, purchase, 30-day lock - the assumptions the pricing engine applies.
- Exactly two structures are offered: the zero-discount-point option (an exact-zero row when priced, otherwise the lowest available rate carrying an actual lender credit), and the lowest note rate whose borrower-paid discount points are more than zero and no more than 1.000. There is no third option.
- Both options are priced on the SAME scenario, so the only difference between them is the pricing structure.
- Pricing source effective 10/26/2026.
- Rates change. This is not a rate lock and not a loan offer.
How the numbers are calculated
Additional upfront cost is the difference between the two options’ estimated cash-to-close totals, not the points difference alone, which would ignore how points move the rest of the cash figure. Monthly saving is the difference in principal and interest. The displayed differences round those exact deltas to the nearest dollar. Break-even uses the unrounded values and rounds up to the next whole month.
Where the lower-rate option does not cost more upfront, or does not lower the payment, no break-even is shown and the reason is stated. No figure here is ever displayed as zero months, a negative number, or an unavailable value dressed as a result.
Both options come from the same pricing call this site’s rates page uses, on the same two selections. The same scenario produces the same rate, APR, points and payment on both pages by construction - there is one engine and one pair of selection rules.
Rate and APR are shown with equal prominence. The payment shown is principal and interest only; property taxes, homeowners insurance, HOA or CDD dues and any applicable mortgage insurance or funding fee are additional and will increase the actual monthly payment.
This is a planning estimate, not a loan offer, rate quote, approval, pre-approval, or commitment to lend.
Interest rates you enter here are assumptions, not APRs.
Results depend entirely on the inputs and assumptions above.
Your official Loan Estimate and Closing Disclosure control the actual terms of any loan.
Mortgage Expert, Inc. originates loans on Florida property only. Minimum loan amount $100,000.