6.Upfront Cost/Payment of Points

Rate Loan Term Points Payment Total Payments Total Interest Points Save You ($/Month) Months to Recover Cost
No Points
Conventional Thinking
With Points
True timeframe to recover points paid if money was used to reduce mortgage instead of paying points
Reduced Mortgage

Disclaimer: Information and interactive Calculators are made available to you as self-help tools for independent use and are not intended to replace accurate and compliant Mortgage disclosure as required by TILA. The Rate shown here is the Note Rate used to calculate monthly Principal & Interest payment only. When disclosing, Lenders are required to quote not only the Note Rate but the Annual Percentage Rate [APR]. The APR is defined as the annualized cost of obtaining credit.