When a client asks "Is it worth buying points?", the Points Analysis tool gives you a clear, side-by-side comparison of up to three rate and points combinations. It calculates the upfront cost difference, monthly payment savings, additional principal applied, and the exact break-even month for each option. You can run this analysis directly from any scenario card and share the results with your client as a PDF or through their digital account.
Before You Start
Requirement | Details |
Active Scenario | You need at least one completed scenario on the deal with a rate and loan amount already in place. This becomes your baseline (Option 1). |
Rate and Points Data | Have the alternative rate and points combinations ready before starting. Your PPE or rate sheet will provide the cost in points for each rate tier. |
Deal Home Access | Navigate to the Deal Home for the borrower whose scenario you want to analyze. |
Step-by-Step: Create a Points Analysis
1. Open the Points Analysis Tool
Go to the Deal Home for your borrower.
Click into the scenario card you want to use as your baseline.
Scroll down to the Analysis section and select Points Analysis.
A modal window will open with your baseline scenario pre-loaded as Option 1.
💡 Tip: Option 1 is always your existing scenario. In the example above, that would be 6.5% with zero points. You cannot edit Option 1 from this screen.
2. Enter Your Comparison Scenarios
Option 2: Enter the lower rate in the rate field and the associated points cost. For example, 6.25% at 0.75 points.
Click Add Option to create a third comparison.
Option 3: Enter the next rate and its points cost. For example, 6.00% at 1.25 points.
Field | What to Enter |
Rate | The interest rate for this option (e.g., 6.25%) |
Points | The discount points required to reach that rate (e.g., 0.75) |
3. Run the Analysis
Click Analyze Options.
The results will appear below the input fields in a collapsed view by default.
Click to expand the results for full detail on each option.
Reading the Results
The analysis output walks through the financial impact of each option compared to your baseline. Here is what each section tells you:
Cost of Points (Upfront Difference)
Column | What It Shows |
Points Difference | The dollar amount each option costs above your baseline. This is the additional cash the borrower pays at closing. |
Hover Icon | Hover over the info icon next to the dollar amount to see the math, especially useful when your baseline does not start at zero points. |
First Principal Payment Comparison
Shows how much of the first monthly payment goes toward principal under each option.
A lower rate means more of the payment applies to principal from day one.
The difference column shows exactly how many additional dollars go to principal compared to Option 1.
Monthly Payment Savings
Displays the raw monthly payment for each option.
The difference column shows how much less the borrower pays each month compared to the baseline.
Total Monthly Benefit
Combines the raw payment savings and the additional principal applied.
This is the number that matters most for the break-even calculation.
Break-Even Period
Divides the upfront cost of points by the total monthly benefit.
The result is the number of months it takes for the savings to recoup the cost of buying points.
A shorter break-even period makes a stronger case for purchasing points.
⚠️ Important: Always discuss the break-even timeline in context. If the client plans to sell or refinance before reaching break-even, buying points may not make financial sense.
Sharing Results with Your Client
1. Generate a PDF
From the analysis results screen, click Preview PDF.
Choose between the Expanded version (full detail on every line item) or the Summary version (points cost and total benefit only).
Send the PDF directly to your client via email or your preferred delivery method.
2. Digital Client Account
Once you save the Points Analysis, it is automatically available in your client's digital account.
On the Deal Home, a yellow indicator appears on the scenario card showing that a Points Analysis is attached.
When your client logs into their account and opens the scenario, they see a yellow Points Analysis button.
Clicking it gives them the full breakdown: points difference, principal impact, payment savings, and break-even period.
Clients can also print the analysis to PDF from their own account if they need to share it with a spouse, financial advisor, or co-borrower.
Quick Reference
Open Scenario Card → Scroll to Analysis → Points Analysis → Enter Rate/Points for Options 2 and 3 → Analyze Options → Review Results → Preview PDF or Share via Digital Account
Tips for Success
Start with your PPE or rate sheet—have the exact rate and points combinations pulled before opening the tool so you can enter them quickly and accurately.
Use the Summary PDF for initial conversations—it keeps the focus on the bottom line without overwhelming clients with math they did not ask for.
Frame the break-even around the client's plans—a 30-month break-even means nothing if the client is planning to move in two years, but it is a strong selling point for someone settling into a forever home.
Point out the principal benefit—many borrowers only think about payment savings and overlook that a lower rate also accelerates their equity build from the very first payment.
Let the digital account do the follow-up work—once the analysis is saved, your client can revisit it anytime without you needing to resend documents or schedule another call.