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.

Definitions

Term	Number of years for this mortgage. Most common terms are 15 years and 30 years.
Mortgage amount	Total balance for your mortgage.
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 for this mortgage
Points rate	Annual interest rate for this mortgage any discount points.
Points	The number of discount points you need to receive the lower rate. Each point costs 1% of your mortgage amount.

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information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.