Should I Buy Points to Lower My Interest Rate?

Home Moving Tips Moving Calculators and Mortgage Calculators Should I Buy Points to Lower My Interest Rate?

One point represents one percent of your loan. You can purchase points at closing based on how much your loan is worth. For example, on a $10,000 loan, one point equals $100. By purchasing points, you can reduce the amount of interest you pay on your loan. Use this calculator to determine if buying points is the right move for you.

Input
Loan Info
Amount ($)
Interest (%)
Interest with Points (%)
Loan Length (Yrs)
Additional Info
Points (%)
Savings Rate (%)
 
Financial Analysis
  Without Points With Points
Amount Financed $200,000.00 $198,000.00
Monthly Payment $1,247.74 $1,167.15
Monthly Payment Savings $80.59
Points Value $2,000.00
Monthly Investment Savings $8.33
True Monthly Savings $72.26
Break Even 2 Yrs 4 Mts
 

DISCLAIMER:
Although this is an estimation of the information you provided, none of these figures are guaranteed. Final statistics can only be given by the financial institution that supplies you with the loan or other financial services. You must double check with your provider to ensure accurate information. Please read the Terms of Use for further details.
 
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