(415) 945-8880
(415) 945-8880
mortgage loans
mortgage loans
mortgage mortgage

Should I pay points for a lower rate?

Paying points for a lower interest rate is a trade off between paying money now versus paying money later. A point - equaling 1% of the total loan amount - is an upfront fee that reduces your monthly interest rate and total interest due over the life of a loan.

Use our calculator to figure out the cost and effective savings of loan points, as well as the minimum amount of time it will take to recover your loan points. The savings rate is used to calculate the amount of interest you could earn if you took the dollar amount of points and placed it into a savings account as an investment.

 Loan Information
  Zip Code 
  Loan Amount ($) 
  Loan Term (Years) 
  Rate without Points 
  Rate with Points
  
Loan Points
 
  Savings Rate (%) 
    
 
  

The results displayed above are only estimates and cannot be used to determine actual loan costs or be used as a guarantee. Please consult your tax advisor for information on the deductibility of interest for tax purposes. Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when comparing to your current situation.
Print  
home loans

 

REAL ESTATE BROKER - CA BUREAU OF REAL ESTATE - BRE # 01230152 NMLS # 238187

REAL ESTATE BROKER - CA BUREAU OF REAL ESTATE - BRE # 01230152 NMLS # 238187

Print  
Copyright 2017 ProMortgage
Privacy Statement | Terms Of Use
powered by OpenClose Mortgage Software
|