Loan Information

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30 years
30 years

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$

$

You save $35.75 if you pay 1 point

Your break even is 5 years, 10 months

SummaryNO POINTSPOINTS
Interest Rate4.000%3.750%
Points-$2,500.00
Break Even-5 yrs, 10 mos
P&I$1,193.54$1,157.79
Taxes$400.00$400.00
Insurance$101.00$101.00
HOA$0.00$0.00
Total Monthly Payment$1,694.54$1,658.79
Monthly Savings$0.00$35.75

Total monthly payment savings over the time you plan to keep the loan/home: $12,869.73


Your Explanation of Benefits

When applying for a mortgage, you will most likely be presented with the option to pay points to lower your interest rate. In order to determine if this investment is worthwhile for you, you will need to know the amount of your loan, the interest rate before the purchase of points, and the interest rate after the purchase of points. You will also need to know the length of the loan and your savings rate.

If you are taking out a $250,000.00 loan with an interest rate of 4.000%, you might be able to buy down the interest rate to 3.750% with points. If you are getting a 30 year loan and paying for your points, your monthly payment (principal and interest only) will change from $1,193.54 to $1,157.79. This will give you a savings of $35.75.

After considering the cost of paying for the points, you will break even after 5 years and 10 months.

You will save $12,869.73 over the time you have the home (defined by the years before sell selection).


DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or its applicability to your financial situation. The results displayed above are only estimates and cannot be used to determine actual loan cost or be used as a guarantee. Your individual results may vary. Please contact your loan consultant for an official estimate.