Mortgage Points Calculator

Discount Points Calculator

Will you save money by paying discount points upfront?

This calculator helps you determine if it makes sense to pay points upfront when taking out a mortgage.

This calculator is designed for fixed-rate mortgages. This calculator does not take into account the difference in the amount of mortgage interest you can deduct from your taxes.  The monthly payment amount does not include taxes and insurance.

 

Asterisk (*) indicates required fields.

TipLoan Amount - Enter the amount you plan to finance. For example, if you are buying a $300,000 home with a 20% down payment, your loan amount would be $240,000.
TipInterest Rate Without Points - Enter the interest rate that you will pay if you do not buy discount points. You can find current rates from Freddie Mac at www.freddiemac.com.
TipDiscount Points - Discount points are paid upfront to obtain a lower interest rate. Typically, one point equals 1% of the loan amount and will lower your interest rate by .25 percent.
TipInterest Rate With Points - Enter the interest rate that you will pay if you buy discount points. Typically, one point equals 1% of the loan amount and will lower your interest rate by .25 percent. You can find current rates from Freddie Mac at www.freddiemac.com.
TipLoan Term - Enter the term you desire for your loan. Common mortgage terms are 15, 25 and 30 years.
This calculator assumes that one point equals one percent of the loan amount and reduces your interest rate by .25 percent. This calculator is designed for fixed-rate mortgages. This calculator does not take into account the difference in the amount of mortgage interest you can deduct from your taxes. The monthly payment amount does not include taxes and insurance.

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