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Loans

Should I Pay Discount Points For A Lower Interest Rate?

Good (82 Ratings)

2.8658532/5

In some cases, it may benefit you to 'buy down the interest rate' by paying extra money up front in the form of discount points. Use this calculator to help determine if this makes sense for you.

Assumptions	Input
Loan amount	(0-9999999)$
Number of years	(1-40)

Mortgage Alternatives	Loan1: Less Points	Loan2: More Points
Annual interest rate: (%)	(0-30)%	(0-30)%
Discount points (if any): (%)	(0-5)%	(0-5)%

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Assumptions	Input
Loan amount
Number of years

Mortgage Alternatives	Loan1: Less Points	Loan2: More Points
Annual interest rate: (%)
Discount points (if any): (%)

See All Calculators

{ "fields" : { "udata" : [ "loanAmount" , "termYears" , "" , "" , "interestRate1" , "interestRate2" , "discountPoints1" , "discountPoints2" ] } }

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This calculator is provided by Financial Calculators, Inc., and is intended solely for general information and educational purposes. You should not take any action on the basis of the information provided through this calculator. Please see the disclaimer for further information and limitations.

Rate This calculator

Good (82 Ratings)

3/5

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Rates

See today's average rates across the country.

• Mortgage

  Loan Type	Today	Last Week
  30 Year Fixed	5.13%	5.16%
  15 Year Fixed	4.70%	4.60%
  1 Year ARM	3.98%	4.00%
  30 Year Fixed Jumbo	6.06%	6.10%
  5/1 ARM	4.30%	4.26%
  3/1 ARM	4.75%	4.80%

  Source: Bankrate
• Home Equity

  Loan Type	Today	Last Week
  $30K Home Equity Loan	8.35%	8.39%
  $50K Home Equity Loan	8.36%	8.41%
  $75K Home Equity Loan	8.39%	8.44%
  $30K HELOC	5.24%	5.26%
  $50K HELOC	4.99%	5.00%
  $75K HELOC	4.99%	5.00%

  Source: Bankrate
• Savings

  Savings Type	Today	Last Week
  6 month CD	1.13%	1.15%
  1 year CD	1.61%	1.63%
  3 year CD	2.28%	2.29%
  MMA	1.04%	1.05%
  $10K MMA	1.13%	1.13%
  $25K MMA	1.34%	1.35%

  Source: Bankrate
• Auto

  Loan Type	Today	Last Week
  36 Month New Car Loan	6.90%	6.96%
  48 Month New Car Loan	7.05%	7.12%
  60 Month New Car Loan	7.11%	7.18%
  36 Month Used Car Loan	7.39%	7.43%
  48 Month Used Car Loan	7.50%	7.51%

  Source: Bankrate
• Credit Cards

  Card Type	Today	Last Week
  Business Credit Cards	9.69%	9.69%
  Low Interest Credit Cards	11.91%	11.91%
  Cash Back Credit Cards	12.36%	12.36%
  Reward Credit Cards	12.85%	12.85%
  Instant Approval Credit Cards	13.32%	13.32%
  Balance Transfer Credit Cards	13.46%	13.46%

  Source: CreditCards.com

View rates in your area

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