Mortgage Points Calculator
Should you buy points? Buying points when
you close your mortgage can reduce its interest rate, which in turn reduces your
monthly payment. But each "point" will cost you 1% of your mortgage balance.
This calculator helps you determine if you should pay for points, or use the
money to increase your down payment. Click on the "View Report" button to review
your information.
Definitions
- Term
- Number of years for this mortgage. Most common terms are 15
years and 30 years.
- Mortgage amount
- Total balance for your mortgage.
- 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 (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.
|