Buying and Selling

Should You Pay Points to Lower the Mortgage Rate

A lower interest rate on your mortgage sounds good… but does it make financial sense?

Mortgage points, also referred to as discount points (or just “points”), are additional funds you can pay at closing to lower your mortgage interest rate. Use the calculator below to see how paying points could impact your cost over the life of the loan.

Whether it makes sense to pay them depends on a few factors—a main one being how long you plan to stay in your home. The longer you expect to be in the home, the greater the advantage of paying points to lower your loan's interest rate. Paying points may not make financial sense if you plan to sell, refinance, or pay off the loan in the near future.

If you need  help crunching the numbers or understanding the results, we’re here to help any way we can.

This calculator is made available by one or more third party service providers. It is not intended to be an advertisement for a product or service at any of the terms used herein. It is not intended to offer any tax, legal, financial or investment advice. All examples are hypothetical and are for illustrative purposes. SunTrust Banks, Inc. and its affiliates do not provide legal or tax advice. SunTrust cannot guarantee that the information provided is accurate, complete, or timely. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. SunTrust makes no warranties with regard to this calculator or the results obtained by its use. SunTrust disclaims any liability arising out of your use of, or any tax position taken in reliance on, this calculator. Always consult an attorney or tax professional regarding your specific legal or tax situation.

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