What the tool does
The calculator compares the upfront cost or credit in two refinance quote structures. It is especially useful when one quote has discount points and another quote uses a lender credit.
It does not choose a lender for you. It estimates the simple break-even between two quote structures so you can ask better questions before locking.
Lender credits vs points calculator
Educational estimate only. Compare actual Loan Estimates before choosing points or lender credits.
How to interpret the result
If the break-even is short and you expect to keep the loan longer than that, paying points may deserve review. If the break-even is long or you may move or refinance again soon, a lender credit or lower-upfront-cost option may fit better.
Ask for the same quote with zero points, with points, and with a lender credit if the lender offers those choices. Then compare the total cost, payment, cash to close and break-even period.
Official-source notes
CFPB consumer resources explain that borrowers should compare Loan Estimates, closing costs, interest rates, points and lender credits together. CFPB also explains that points usually lower the interest rate in exchange for more money at closing, while lender credits can reduce upfront costs in exchange for a higher rate.
Start the conversation
Want to talk through your refinance situation?
Use the simple conversation form if you want to be connected with a licensed mortgage professional. RefiRatesToday does not collect loan applications, Social Security numbers, mortgage statements, income documents, or sensitive borrower files.
Additional practical context
The refinance decision is intentionally written as homeowner guidance rather than a rate quote or loan application. Before acting on any refinance idea, compare the loan purpose, total estimated costs, monthly payment impact, break-even timing, property plans and available alternatives.
For mortgage decisions, official disclosures and licensed professional guidance matter. A calculator or guide can clarify the question, but the final decision should be based on actual quote details and the homeowner's situation.