Mortgage Points Calculator
Should I Purchase Mortgage Points?
What are mortgage points? Mortgage points are used to lower your interest rate and monthly payment. Buying points is essentially like paying interest up-front. The points are expressed as a percentage of the total cost of the loan, and each point is equal to one percent. For example, if the loan amount is $300,000 then one point would equal $3,000.
Are Mortgage Points Worth It?
You can benefit from purchasing mortgage points if you plan on staying in your home for a long time. The longer you stay in your home the greater chance you will break-even and save over the life of the loan. Consider if you have enough cash reserves to pay for mortgage points in addition to closing costs and other fees. Buying points might not be a good idea if you need the cash or you’ll move before you hit the break-even point.
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Next Steps
Fifth Third can help you reach your dream of homeownership. Learn about mortgage basics and the types of mortgages we offer. Questions? , talk to a mortgage loan specialist, or give us a call at .
Additional Resources
Five Steps to Become a First Time Homebuyer
Purchasing your first home should be an enjoyable process. Follow these steps on how to buy your first home and see first time home buyer loan options.
Mortgage Education: The Basics
As you prepare to buy a home, connect with a Fifth Third Bank mortgage specialist to understand how mortgages work and which home loan suits your needs.
First Time Home Buyer
Thinking about Buying your first home? Fifth Third Bank offers you tips that take you through the entire process. Download our first time home buyer guide here!