Not sure if you should pay discount points on your mortgage loan? Fill in the following boxes to find out.
Discount Calculator-Should I Pay Points?
Points, often referred to as discount points, are in effect interest that you prepay on your loan in order to reduce the monthly interest rate on your mortgage. Discount points have other advantages as well including:
Save on taxes because they are often tax deductible
Lower monthly mortgage payments
If you’re unsure whether paying points is the right course for you, utilizing a discount points calculator, such as the one here at MortgageLenders.org can help you to determine whether it will benefit you to buy down the rate of your loan by paying additional money up front for discount points.
Keep in mind that discount points typically represent 1% of the balance of your mortgage. By completing the information required on the discount points calculator you can determine whether it makes better financial sense for you to purchase discount points or perhaps use that money toward your down payment instead.
Factors that may effect your decision to pay or not pay for discount points could include the length of time you wish to stay in the home. If you’re still not sure whether it is in your best interest to purchase discount points, let MortgageLenders.org connect you with a mortgage expert who can show you comparisons and help you make an informed decision.