Mortgage Points Calculators

The mortgage point calculators here indicate the break-even period beyond which it pays to pay points to reduce the rate, or the rate of return on investment in points.

Mortgage points are upfront fees on a mortgage expressed as a percent of the loan amount, where 1 point is 1% of the loan. Points are part of the charge for a loan, along with the interest rate and other lender fees expressed in dollars. Lenders typically offer a range of interest rate/point combinations, where higher points mean a lower rate. A suggested reading is Questions About Mortgage Points.

Two kinds of analysis can be used to assess the wisdom of paying points in order to reduce the interest rate. One is to calculate how long the borrower must hold the mortgage to come out ahead in paying points to reduce the rate. This is the “break-even period”. Read Pay Points on an ARM?

Mortgage Points Calculator: Break-Even Period on FRMs.
For borrowers who want to know the break-even period on an FRM.

Mortgage Points Calculator: Break-Even Period on ARMs.
For borrowers who want to know the break-even period on an ARM.

The alternative approach is to view points as an investment and calculate the rate of return over the period the borrower expects to have the mortgage.

Mortgage Points Calculator: Rate of Return on FRMs.
For borrowers who want to know the rate of return on an investment in points on an FRM.

Mortgage Points Calculator: Rate of Return on ARMs.
For borrowers who want to know the rate of return on an investment in points on an ARM.

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