The formula is simple: divide the point cost by the monthly savings. The result is the number of months to break even.
For a 00,000 loan, buying 1 point costs ,000 and typically saves about 5 per month. Break-even is 40 months. For a 00,000 loan, 1 point costs ,000 and saves about 25 per month. Break-even is still 40 months.
Break-Even Formula
Patrick Kevin Fagan explains break-even formula for homebuyers in San Antonio and the Texas Hill Country. Detailed break-even analysis with worked examples for different loan amounts and point purchases.
Worked Examples by Loan Size
Patrick Kevin Fagan explains worked examples by loan size for homebuyers in San Antonio and the Texas Hill Country. Detailed break-even analysis with worked examples for different loan amounts and point purchases.
Break-Even Chart
Patrick Kevin Fagan explains break-even chart for homebuyers in San Antonio and the Texas Hill Country. Detailed break-even analysis with worked examples for different loan amounts and point purchases.
Practical Application
Patrick Kevin Fagan explains practical application for homebuyers in San Antonio and the Texas Hill Country. Detailed break-even analysis with worked examples for different loan amounts and point purchases.
