Buying points can lower your mortgage payment. See how much you can save when buying points. Points cost money. Does it make sense to buy points to lower your interest rate? In some cases the amount saved on interest is too small, thus buying points wouldn't be an effective use of your finances. However, in some cases purchasing points can save much needed money on interest.

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Should I Pay Points to Lower Interest Rate?

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

 
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Loan Type
Today
1-Year ARM
5.46%
5/1 ARM
5.75%
15-Year Fixed
6.14%
30-Year Fixed
6.29%
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