Should I Pay Points?

Mortgage Rate Calculator

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 saving of loan points as well as the minimum amount of time it will take to recover your loan points.

Loan Information

Time To Recover Cost Of Points

Calculator Results:

2 Year(s)
9 Month(s)
Time To Recover

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Today's Average 3.84%
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  • Monthly Payment without Points $1,498.88
  • Monthly Payment with Points $1,342.05
  • Monthly Savings from Points $156.83
  • Cost of Points $5,000.00
  • Savings Rate of Return 2.000%
  • Monthly Income from Investment $8.33
  • Effective Monthly Savings $148.50

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Product Disclaimers and Sourcing

Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Click here for more information on rates and product details. CA Bur. of Real Estate, Lic. #01937608.

* These calculations are only estimates and should not be used to determine actual loan costs. Please consult your tax advisor for information on the deductibility of interest for tax purpose. 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.