You can reduce your monthly payments by $15 by paying 1 point to your lender.?

Deal Score0

Your mortgage loan is $ 114,167. How long will it take for the monthly payment to offset the cost of the point?

3 Comments
  1. Reply
    Shoeshawcka
    April 30, 2011 at 1:07 am

    Too long.

  2. Reply
    real estate guy
    April 30, 2011 at 1:13 am

    usually one point is equal to 1% of the loan amount.
    usually one point is equal to 1/8% lower rate.

    If you pay 1 point = 1,147.67.
    You would save 11.89 a month.

    It would take you 96 months (8 years) to break even.

    That is why point usually are not a great deal.

  3. Reply
    roxy
    April 30, 2011 at 1:23 am

    Your lender should break it down for you more accurately. Paying a point can save more than that, depending on the house price. I would assume about 4 or 5 years to offset the cost, depending on how much the point will cost.

    Leave a reply

    Register New Account
    Reset Password