Paying points will reduce the interest rate and your monthly payments. But points come at a price with each point equal to one percent of the loan amount.
MORTGAGE CALCULATORS
Mortgage Points Calculator
To determine if you are better off paying points or using the money to pad your down payment, enter your loan information below and click "View Report."
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Term: Number of years for this mortgage. Most common terms
are 15 years and 30 years. Mortgage amount: Total balance for your mortgage. This calculation assumes that the cost of buying points is financed. The loan amount with points will be higher than the loan without points by the cost of the purchased points. Interest rate: Annual interest rate for this mortgage without purchasing any discount points. Years in home: The number of years you expect to live in this home or the number of years before you refinance your mortgage. Principal and interest: Monthly principal and interest, or PI, for this mortgage. Points rate: Annual interest rate for this mortgage with discount points. Points: The number of discount points you need to receive the lower rate. Each point costs 1% of your mortgage amount.
