MCPCalc

Mortgage Buydown Calculator

Estimate rate buydown savings and break-even timeline from points paid.

Scratchpad (not saved)

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What This Calculator Does

Estimate rate buydown savings and break-even timeline from points paid.

It combines Loan Amount, Base Rate, Points Paid, Rate Reduction per Point to estimate Break-Even Timeline, Rate After Buydown, Monthly Savings.

Formula & Method

Core equations: Points cost: C_{points} = L \times p New rate: r_{new} = r_{base} - p \times \delta where \delta is the rate reduction per point. Break-even: \text{Months} = \frac{C_{points}}{M_{base} - M_{new}} Inputs are applied in base units, then derived metrics are computed from the same equations and rounded for display.

Notation used in the formulas: R = Break-Even Timeline; x_{1} = Loan Amount; x_{2} = Base Rate; x_{3} = Points Paid; x_{4} = Rate Reduction per Point; x_{5} = Term.

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this calculator for quick scenario analysis. Start with baseline values, change one driver at a time, and compare how sensitive the results are to each input shown above.

Inputs Used

  • Loan Amount: Used directly in the calculation.
  • Base Rate: Used directly in the calculation.
  • Points Paid: Used directly in the calculation.
  • Rate Reduction per Point: Used directly in the calculation.
  • Term: Used directly in the calculation.

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