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  • 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. (Please note: This calculator is intended to provide approximate information on loan payments and does not constitute an offer to extend credit. Your actual payment information may vary.)


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    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. 

    Information and interactive calculators are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy or their applicability to your circumstances. All calculations are based on user inputs and do not reflect any guarantee or commitment of the loan, interest rate, expected savings or tax advantage. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.