For buyers

Should I Pay Points?

Money up front for a lower rate. See how long you would have to stay for it to pay off.

Paying points means handing over cash at closing to buy a lower interest rate. It is a straight trade, and it only wins if you keep the loan long enough for the smaller payments to add up to what you paid. Sell or refinance before that and the money is gone.

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One point is 1% of the loan, paid at closing.

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Ask the lender for both quotes in writing. A point usually buys somewhere around a quarter of a percent, but it varies by the day.

You break even after

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Payment without points
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Payment with points
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Saved each month
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Cost of the points
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Total interest without
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Total interest with
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Net saving if you keep the loan
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An estimate, not a quote. These figures are estimates for planning only. They are not a loan offer, a quote, or advice. Interest rates, taxes, insurance, and closing costs vary by lender, property, and location. Confirm every number with your lender and a licensed professional before making a decision.

Want to know what you can actually borrow?

A lender can tell you in a few days, in writing, and it costs nothing. We can point you to one, or just answer questions.

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