Not sure if you should pay discount points on your mortgage loan?
Fill in the following boxes to find out.

Should I pay discount points?
Original Interest Rate: %
Interest Rate with Discount Points: %
Discount Points:
Total Home Mortgage Amount: $
Term of the Loan: years

Calculator Definitions

Original Interest Rate: The annual interest rate given BEFORE any discount points are applied.

Interest Rate With Discount Points: The annual interest rate given WITH discount points applied.

Discount Points: The number of discount points required to receive the "Interest Rate With Discount Points" percentage rate

Total Home Mortgage Amount: The total dollar amount borrowed for this loan, or principal amount.

Term of the Loan: Total number of years in which this mortgage will be paid.  Typically 15, 20 or 30 years.

Original Rate - Monthly Payment: This is your monthly mortgage payment rate BEFORE any discount points are applied.

With Discount Points - Monthly Payment: This is your monthly mortgage payment AFTER discount points are applied.

Monthly Payment Savings: This is the monthly dollar amount you will save on mortgage payments using discount points vs. no discount points.

Recoup time of cost of Discount Points: This is how long in months it will take to recoup the cost of the discount points paid initially.

*Please note this calculator is to be used as a point of reference only, calculations should be confirmed with your mortgage broker before signing any agreements.  Calculations do not include property taxes, mortgage insurance, or other costs associated with your mortgage.

Treasury Auctions Done. Bonds Cautiously Resilient as Stocks Repeat History - Posted To: MBS CommentaryTreasury just sold $29 billion 7s to a group of uninterested buyers... Auction demand as measured by the bid to cover ratio was below average. 2.78 bids were submitted for every 1 accepted by Treasury. Compare that to the ten auction average of 2.81 and the five auction average of 2.86. 25.6% of the issue was awarded at the high yield of 2.394%. This was 2.1bps above the 1pm "when issued" bid, a sign that buyers were looking to pay a little less than they did. Primary dealers took down a much greater award than usual, which explains why the high yield tailed. 48.8% of the issue and 25.1% of what they bid on. Both metrics are above average. This is not indicative of strong buyside demand. Directs were awarded 8.9% of the competitive bid. That makes them 0 for 3 this week. Indirects...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Fannie Mae Preps Investors for Reform. Book of Business Reflects Tight Credit Conditions - Posted To: MND NewsWireIn the wake of the passage of Wall Street Reform, which many opponents have criticized Capitol Hill for failing to deal with the future of Fannie Mae and Freddie Mac, the Obama Administration is beginning to present the broad outlines of how the future of the GSEs will be determined. In a letter released Tuesday , David H. Stevens, acting commisioner of the FHA, said that the question of reforming the GSEs is "not if, but when." The Obama administration, he said, has made it clear from the beginning that the current structure of the government's role in the housing finance market is unsustainable and unacceptable, but winding down Freddie and Fannie abruptly would destabilize an already fragile housing industry and put the loans already on the books of these institutions at even...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.