Should I Pay Points Calculator

 
Financial Analysis (Switch to Plain English)
  Without Points With Points
Amount Financed : $250,000.00 $250,000.00
Monthly Principal & Interests : $1,342.05 $1,266.71
Monthly Payment Savings : $75.34
Points Value : $2,500.00
Monthly Investment Savings : $10.42
True Monthly Savings : $64.92
Break Even : 3 Years 3 Months
Step 1: Understand Calculator In Plain English (Show Financial Analysis)

When applying for a mortgage, you will most likely be presented with the option to pay points to lower your interest rate. In order to determine if this investment is worthwhile for you, you will need to know the amount of your loan, the interest rate before the purchase of points, and the interest rate after the purchase of points. You will also need to know the length of the loan and your savings rate.

If you are taking out a $250,000.00 loan with an interest rate of 5.000%, you might be able to buy down the interest rate to 4.500% with points. If you are getting a 30 year loan and paying for your points, your monthly payment (principal and interest only) will change from $1,342.05 to $1,266.71. This will give you a savings of $75.34.

But, if you put your money in the fund with an average savings rate of 5.000% rather than purchasing points to cut an interest rate of your mortgage loan, you might get $10.42 per month from your investment. When you figure in your investment savings, your true savings will be $64.92 per month.

After considering the cost of paying for the points, you will break even after 3 years and 3 months.

Step 2: Input Your Calculations Below
Loan Information
Amount : ($)
Interest Rate : (%)
Interest Rate with Points : (%)
Length : (Yrs)
Additional Information
Points : (%)
Your Savings Rate : (%)
 Let Me Print That Form in PDF!

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.

For Future Reference

BOOKMARK THIS SITE NOW

Get Started - Apply Today

FHA Application - Apply For FHA
Frequently Asked Questions
FHA Guidelines
FHA Requirements

FHA Refinance Programs

FHA Streamline
FHA Secure
FHA Loan Refinance

FHA Loan Programs

Federal Housing Administration
FHA Down Payment
203k FHA Loan
FHA Fixed Rate
FHA Adjustable Rate

FHA Loan Calculators

Mortgage Payment Calculator
Mortgage Principle Calculator
Mortgage Length Calculator
Mortgage Affordability Calculator
All Mortgage & Refi Calculators

Contact FHA Loan Corp

Apply Today
Contact Us

Testimonials

FHALoanCorp
Phoenicia Center
7932 W. Sand Lake Road
Suite 106
Orlando, FL 32819
Email: info@fhaloancorp.com
Copyright © 2004-2010 - FHALoanCorp | Privacy Policy

Helpful Articles & Info

Federal Housing Administration
FHA Loan Information
10 Things To Know About FHA Loans
FHASecure Saves 33,000 Homes
FHA Loan Benefits & Information
Why Ask For An FHA Loan?
What Does The FHA Do?
Fixed Rate Loan Information
Refinancing Home Loans
FHA Loans Are In High Demand
Avoid Foreclosure With FHASecure
Subprimes In Favor of FHA
FHA Mortgage Insurance
FHA Adjustable Rate Mortgage
FHA Insurance Funds
FHA Mortgage Refinance Options
FHA Loan Checklist
What is FHA Refinancing?