Based off the information you provided (5 years before you sell the home, a Purchase loan, loan amount of $250,000.00, term of 30 years, state tax rate of 5%, federal tax rate of 22%, savings rate of 3.5%), your low interest rate/high points of 4% would result in a loan payment amount of $1,266.71. You will save approximately $22,360.01 over the next five years, resulting in a break-even point of 11 Months. You can see how it may be prudent to choose a Purchase loan with a low interest rate and high points, due to the lower overall cost of $51,720.12.