Welcome > Resources > Mortgage Calculators > Buying Points ...

Will Buying Points Save You Money?

Should you buy points? Buying points when you close your mortgage can reduce its interest rate, which in turn reduces your monthly payment. But each "point" will cost you 1% of your mortgage balance. This calculator helps you determine if you should pay for points, or use the money to increase your down payment. Click on the "View Report" button to review your information.

Definitions

Term

Number of years for this mortgage. Most common terms are 15 years and 30 years.

Mortgage amount

Total balance for your mortgage.

Interest rate

Annual interest rate for this mortgage without purchasing any discount points.

Years in home

The number of years you expect to live in this home or the number of years before you refinance your mortgage.

Principal and interest

Monthly principal and interest (PI) for this mortgage.

Points rate

Annual interest rate for this mortgage with discount points.

Points

The number of discount points you need to receive the lower rate. Each point costs 1% of your mortgage amount.

The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

"A model of how the Internet can facilitate the process of deciding where to send your children to school" - America's Best School Profiles by The Heritage Foundation Texas Public, Private and Charter Schools: Compare them using these top-rated, comprehensive reports.   Schools in Southlake

Accepting An Offer >Responding to Low Offers The beginning of negotiations is usually the end of many months of hard work for the buyer or seller. The work ahead requires skill in order to maintain a strong position. Sellers can lose their advantage if they do not counter an offer that a buyer has made. Even if the opening offer is beneath what the seller feels is reasonable, it is advisable for the seller to respond with a slight reduction from the asking price. The most important component in negotiating is good communication. The best way to handle a low offer is to counter it with definite terms that are favorable to the seller. A counter offer has two advantages: 1) it keeps the buyer interested, and 2) it moves the negotiation forward and gives the buyer the opportunity to submit another offer that the seller is more likely to prefer. See All Tips In The "Accepting An Offer" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  What is the maximum interest you can deduct on your federal tax return to purchase or improve a first or second home? A  One of the greatest benefits of home ownership is the federal tax deduction for interest up to, but not exceeding, $1million. See More Real Estate Trivia >

The Touchstone Team Keller Williams 850 E. State Hwy. 114, Suite 100 Southlake, TX 76092 Phone: 817-481-7355 (SELL) Fax: 817-251-1522 Email: Tiffany@NUMBER1EXPERT.com The Heldoorn Team list and sell more than any other agent in Northeast Tarrant County. They bring to their clients over 19 years of experience in real estate and they have been awarded #1 real estate team in the nation. Also,The Heldoorn Team has received the award for Top Producer for the past 16 years and they continue to lead the way! www.theheldoornteam.com is brought to you by The Touchstone Team NUMBER1EXPERT™ in real estate for Southlake, Texas Read The Touchstone Team's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

NUMBER1EXPERT™
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.