Roeser Accountancy - Fresno Accountant, Business Valuation, & Financial Consultant

Mortgage Points Analysis

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.

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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 for this mortgage.

Points rate:
Annual interest rate for this mortgage any discount points.

Points:
The number of discount points you need to receive the lower rate. Each point costs 1% of your mortgage amount.

The information presented is of a general nature only and may omit details related to your particular circumstances, and accordingly cannot be regarded as legal or tax advice. Please contact the office to discuss how this information pertains to your specific financial or tax situation.