The mortgage points calculator will help you to calculate whether or not it is going to be beneficial for you to buy mortgage points or not. The calculator also helps you to calculate if it is more beneficial for you to take the extra money that you would have applied to paying for points and apply it to reducing your principal balance instead by making additional payments with your monthly mortgage payments.
Mortgage Points Calculator Overview
Buying points on your mortgage also buys down your mortgage rate. So the more points that you, the lower your interest rate will be. But is it really beneficial to pay more money in upfront costs to get a lower interest rate? The answer to this question depends on your personal financial situation and how long you plan on living in the home or having the mortgage in place. Each point that you buy costs you one percent of your mortgage amount so buying points can add up. For example, if you are establishing a $200,000 and you choose to buy two points, you will be paying $4,000 in points. This does not include any of the other closing costs that are associated with setting up a mortgage.
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