Should I Pay Points for a Lower Rate? Paying points for a lower interest rate is a trade off between paying money now versus paying money later. A point - equaling 1% of the total loan amount - is an upfront fee that reduces your monthly interest rate and total interest due over the life of a loan. Use our calculator to figure out the cost and effective savings of loan points as well as the minimum amount of time it will take to recover your loan points.  Should I Pay Points?   Loan Information     Zip Code       Loan Amount       Term in Years       Rate without Points       Rate with Points     Loan Points       Savings Rate(%)                     Inquire Now!   Fill out our easy-to-use application and get approved for a home loan quickly. *These calculations are only estimates and should not be used to determine actual loan costs. Please consult your tax advisor for information on the deductibility of interest for tax purposes. Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when comparing to your current situation.