This Client Paid 1 Point and Hit Mortgage Break-Even in 2 Years
- By Jim Blackburn
- on
Client Profile:
- Names: Travis & Kelsey
- Ages: 42 & 40
- Occupations: Software engineer and teacher
- Goal: Buy a forever home with the lowest possible long-term cost
- Location: Salt Lake City, UT
The Situation
Travis and Kelsey were approved for a $615,000 home and had solid income. Their loan estimate came back with a 6.75% rate and no points.
They told us:
“We’re planning to stay in this home for at least 10 years — maybe forever.”
So we ran a Rate Buydown Scenario, comparing no points vs. 1 point paid upfront.
The Comparison
Option | Interest Rate | Monthly Payment | Cost of Points | Monthly Savings | Break-Even |
No Points | 6.75% | $3,989 | $0 | — | — |
Pay 1 Point | 6.25% | $3,783 | $6,150 | $206 | ~30 months |
They had the funds and long-term plan to justify it — so they chose to pay the point.
The Results
- Break-even hit in 29 months
- Saved over $2,400/year in interest
- Now using the monthly savings to build their child’s college fund
- No regrets: they avoided chasing a refi and locked in a better rate upfront
What They Said
“We almost skipped the points just to ‘keep it simple,’ but your calculator showed us how much smarter it was to buy it down. Best decision we made in the process.”
Takeaway for Readers
If you’re planning to stay long term, paying points can be one of the best investments you make at closing — but only if the break-even timeline makes sense for your goals.
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