Discount Point Calculator
Should I pay discount points?
Mortgage Discount Points Key Factors
Breakeven (Months)
Homes are not always forever. The breakeven point is the time period in months when it becomes worthwhile to invest in discount points. Refinancing or selling before that period would result in a loss.Origination and Discount Points
Origination points are fees some lenders may charge for evaluating and processing a mortgage. Discount points usually translate to a lower mortgage interest rate, and one point generally equals 1% of the mortgage.Mortgage Type
The two main types of mortgages, ARM and Fixed-Rate have some differences. Fixed-Rate mortgages have an interest rate that is fixed throughout the term of the loan. An ARM (Adjustable-Rate Mortgage) typically has an interest rate that periodically changes, usually on an annual basis.Payment Difference
The monthly savings received by putting money up front to act as a discount point.
Savings Until Sell
This figure is directly influenced by the “Years to Sell or Refinance” field. It is the amount that would be saved by having discount points during the time up until the sale or refinance date.Years to Sell or Refinance
Do you want to understand the interest implication of selling early or refinancing? The interest paid will be shown as well as the percentage of interest vs. the principal per month when the “Show Amortization Schedule” button is selected.
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