| Calculators >> Mortgage
Points Calculator
Should you pay points? Paying 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.
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Information and
interactive calculators are made available to you as self-help
tools for your independent use and are not intended to provide
investment advice. We can not and do not guarantee their
applicability or accuracy in regards to your individual circumstances.
All examples are hypothetical and are for illustrative purposes.
We encourage you to seek personalized advice from qualified
professionals regarding all personal finance issues.
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