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Should I Pay Discount Points For A Lower Interest Rate?

In some cases, it may benefit you to 'buy down the interest rate' by paying extra money up front in the form of discount points. Use this calculator to help determine if this makes sense for you.
Assumptions
Loan amount  
Number of years  
Mortgage Alternatives
 Loan1: Less PointsLoan2: More Points 
Annual interest rate: (%)  
Discount points (if any): (%)  
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This information may help you analyze your financial planning needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. This service shall not infer that company assumes any fiduciary duties. In addition, such service should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.