Menu Show Menu Show Menu
HomeOur ListingsLand ListingsCommercial ListingsSearch MLS ListingsDream Home FinderYour Home's ValueAbout UsBuyer ReportsSeller ReportsMortgage CenterGet Pre-QualifiedSchool SearchLocal and State InfoTell A FriendWhy use a REALTOR®?Real Estate GlossaryMy ProfileContact Office
County Line Realty
532 E. Main Street
Bullard, TX 75757
Phone: (903)894-8141
Fax: (903) 894-8269
GRI stands for Graduate REALTORS® Institute. The GRI designation acknowledges REALTORS® who have completed a comprehensive education program that provides practical real estate training. This program is above and beyond the education required to earn a real estate license.An arrangement by which real estate brokers place their listings together so that all members of the multiple-listing service have an opportunity to sell properties listed by other members of the service.A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION of REALTORS® (USA) or the Canadian Real Estate Association (Canada). The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics.Hold mouse over logo for description.

We LOVE East Texas! Let us help you with your real estate needs. 

Logo for

Logo for

Mortgage Calculator     
Calculators Provided by: IMAGEPROWEBSITE.COM

Should I Pay Points to Lower My Interest Rate?

Input Information
Loan Information
Amount : ($)
Interest Rate : (%)
Interest Rate with Points : (%)
Length : (Yrs)
Additional Information
Points : (%)
Your Savings Rate : (%)

Financial Analysis (Switch to Plain English)
  Without Points With Points
Amount Financed : $250,000.00 $250,000.00
Monthly Principal & Interests : $1,122.61 $1,266.71
Monthly Payment Savings : $-144.10
Points Value : $2,500.00
Monthly Investment Savings : $10.42
True Monthly Savings : $-154.52
Break Even : Bad Data - please check your inputs
Plain English Help (Switch to Financial Analysis)

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 3.500%, you might be able to buy down the interest rate to 4.500% 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 $1,122.61 to $1,266.71. This will give you a savings of $-144.10.

But, if you put your money in the fund with an average savings rate of 5.000% rather than purchasing points to cut an interest rate of your mortgage loan, you might get $10.42 per month from your investment. When you figure in your investment savings, your true savings will be $-154.52 per month.

After considering the cost of paying for the points, we're realized that you will NOT break even.

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.