How the Should I Pay Points Calculator Works

A "point" is a fee equal to 1% of your loan amount, paid at closing in exchange for a lower interest rate on the loan (a "rate buy-down"). This calculator compares your monthly payment with and without points, then divides the up-front cost of the points by your monthly savings to find your break-even point - the number of months before the lower payment has saved you more than the points cost. If you plan to keep the loan (or stay in the home) past that point, paying points typically saves money over the life of the loan; if not, it usually doesn't.

California rules & 2026 figures that apply

• The 2026 FHFA baseline conforming loan limit for Sacramento County (1-unit) is $832,750, up 3.3% from $806,500 in 2025; CA high-cost counties top out at $1,249,125 (150% of the baseline) for 2026 (FHFA, 2026 Conforming Loan Limit Values).

Estimates only, not a commitment to lend. Figures above reflect publicly reported 2026 program limits and CA tax rules as of this writing and can change - confirm current numbers and your specific eligibility with one of our loan officers before making a decision. The Home and Commercial Loan Company, Inc. is an Equal Housing Opportunity lender, NMLS #1665729.