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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 saving of loan points as well as the minimum amount of time it will take to recover your loan points.  


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