Paying Points: 3-Way Comparison

HomeWealth Solutions LLC  ·  NMLS #2742458

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The question: You have a specific amount to put toward your closing — should you pay points to buy down your rate, apply it to reduce the loan principal, or keep the full loan with the base rate? This tool shows which option wins at your time horizon.
Loan & Points Details
Loan Amount
Base Rate (No Points)
%
Points Cost Specific dollar amount available
Rate With Points
%
Loan Term
yrs
Analysis Horizon
How long do you plan to keep this loan?
years custom
No Points
Loan Amount
Rate
Monthly P&I
Total P&I at Horizon
Upfront Cash Used
Savings vs. This OptionBaseline
Buy Down the Rate
Loan Amount
Rate (Bought Down)
Monthly P&I
Monthly Savings
Breakeven
Total P&I at Horizon
Net Savings at Horizon
Apply to Principal
Loan Amount (Reduced)
Rate (No Change)
Monthly P&I
Monthly Savings
Breakeven
Total P&I at Horizon
Net Savings at Horizon
Key Talking Point
Enter your loan details above to generate the comparison.
Cumulative Interest Paid Over Time — All 3 Scenarios
This communication is for informational and educational purposes only and does not constitute an offer to lend or a commitment to make a loan. All loans are subject to credit approval, underwriting guidelines, and property approval. Interest rates, payment examples, programs, and terms are illustrative, vary by borrower qualification, and are subject to change without notice. Not all applicants will qualify. Examples shown do not reflect all costs of a mortgage transaction. Consult a licensed tax or legal advisor regarding your individual situation. HomeWealth Solutions LLC is licensed by the Florida Office of Financial Regulation, Mortgage Broker License #MBR8082. Verify our licensure at www.nmlsconsumeraccess.org. Equal Housing Opportunity.