Mortgage Points Calculator

Not sure if you should pay discount points on your mortgage loan?
Fill in the following boxes to find out.

Should I pay discount points?
Original Interest Rate: %
Interest Rate with Discount Points: %
Discount Points:
Total Home Mortgage Amount: $
Term of the Loan: years

Mortgage Points Calculator Definitions:

Original Interest Rate: The annual interest rate given BEFORE any discount points are applied.

Interest Rate With Discount Points: The annual interest rate given WITH discount points applied.

Discount Points: The number of discount points required to receive the "Interest Rate With Discount Points" percentage rate

Total Home Mortgage Amount: The total dollar amount borrowed for this loan, or principal amount.

Term of the Loan: Total number of years in which this mortgage will be paid.  Typically 15, 20 or 30 years.

Original Rate - Monthly Payment: This is your monthly mortgage payment rate BEFORE any discount points are applied.

With Discount Points - Monthly Payment: This is your monthly mortgage payment AFTER discount points are applied.

Monthly Payment Savings: This is the monthly dollar amount you will save on mortgage payments using discount points vs. no discount points.

Recoup time of cost of Discount Points: This is how long in months it will take to recoup the cost of the discount points paid initially.

*Please note this calculator is to be used as a point of reference only, calculations should be confirmed with your mortgage broker before signing any agreements.  Calculations do not include property taxes, mortgage insurance, or other costs associated with your mortgage.

MBS RECAP: Uneventful Start; Consolidation Continues - Posted To: MBS CommentaryAs of October 16th, we'd been tracking the most recent consolidation in bond yields (and stocks for that matter) waiting for a breakout to suggest the next dose of momentu...

Mortgage Rates Little-Changed to Begin The Week - Posted To: Mortgage Rate WatchMortgage rates didn't move much today. Lenders who made changes to Friday's rate sheets generally did so toward slightly higher rates. Actually, it would be more precise ...

Training & Events; False Claims Penalty; Lender Products & Services - Posted To: Pipeline PressResidential mortgage bankers are notoriously bad at actually retiring. They usually seem to come back as teachers, consultants, remodelers, etc. But plenty of people do retire...

MBS Week Ahead: Limited Data, Bond Auctions, and More Indecision - Posted To: MBS CommentaryThe basic candlestick or bar chart that the average bond analyst uses to track 10yr Treasury yields is doing a good job of capturing the current opposing forces in rates. On t...