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Mortgage Discount Points Calculator

The Mortgage Discount Points Calculator is based on discount points when purchased against a fixed rate mortgage

Discount points are purchased at 1% of the original principal amount

Buying 1 discount point reduces the annual interest rate by 0.25%

Discount points reduce the monthly payment, but the cost of the discount points has to be taken into consideration

The calculator below shows the break even point at which the saving on the monthly payment has equalled or surpassed the purchase cost of the points.

A comparison of the payment schedules is shown in a table below the calculator

Calculations can be saved to a table by clicking the "Add to table" button (table appears below the schedule comparison)

(The table appears the first time the button is clicked)

Mortgage Details
Mortgage Details
Mortgage Amount Total value of the mortgage
Term in months Total length of the mortgage in months
Annual Interest Rate % Original interest rate before discount points purchase
Monthly Payment Monthly payment based on the details above
Discount Points Details
Number of points purchased Total number of points
Cost per 1 point The cost of 1 point at 1% of the mortgage value
Total purchase cost Total cost of the discount points
Revised Interest Rate Interest rate after deducting 0.25% per point
Revised Monthly Payment Monthly payment based on the revised monthly payment
Monthly Difference The difference between the original monthly payment and the revised monthly payment
Break Even Month Number of months to cover purchase cost