Mortgage Points Calculator

Discount points are prepaid interest: you pay a percentage of the loan at closing and the lender drops the note rate. Enter the loan amount, the term and the two rate quotes, and this works out what the points cost, how much smaller the payment becomes and how many months the saving takes to repay them. It also scores both loans at the date you expect to sell or refinance, carrying the balance still owed, because the cheaper loan pays principal down slightly faster. A second mode turns points and lender fees into the effective rate the loan really costs over its full term.