Should You Refinance for Points?
Plug in your loan balance, interest rates, and point bonuses. We run the net-dollar arbitrage calculation so you never overpay on interest.
Mortgage vs. Points Arbitrage Calculator
Compare the cash penalty of a higher interest rate against the real dollar value of frequent flyer sign-up and annual bonuses.
Travel Redemption Potential
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The Three Golden Rules of Mortgage Points
1. Every 10 Basis Points Matters at Scale
On a $1,000,000 loan balance, a 0.10% (10 bps) rate difference equates to $1,000 in before-tax interest per year. If a points loan charges 30 bps more than a market leader, you are paying $3,000 cash for those points.
2. Value Points Honestly
Do not calculate points at 3¢ or 4¢ unless you have confirmed seat availability. A conservative baseline of 1.2¢ to 1.5¢ reflects realistic Business Class award seat redemptions. If the math doesn't work at 1.4¢, walk away.
3. The Upfront Arbitrage Window
Many borrowers take advantage of the massive Year 1 sign-up windfall (e.g. 250,000 to 350,000 points upon settlement), bank the points, and re-negotiate or refinance their rate after 12 to 18 months once clawback periods expire.