**Introduction:** The Mortgage Point Calculator enables users to explore potential savings by adjusting points on a mortgage. By inputting details such as the loan amount, annual interest rate, loan term, and points (expressed as a percentage of the loan amount), users can estimate the impact of buying down their interest rate.

**Formula:** The calculator employs a formula to calculate monthly payments both with and without points. The estimated savings result from the difference between the total payments over the loan term with and without points.

**How to Use:**

- Enter the Loan Amount representing the total amount of the mortgage.
- Input the Annual Interest Rate, expressed as a percentage.
- Specify the Loan Term in years.
- Enter the Points, representing the percentage of the loan amount you are willing to pay upfront.
- Click the “Calculate” button to obtain the estimated savings.

**Example:** Suppose you have a $200,000 mortgage with a 4% interest rate for 30 years. By adjusting points, you can evaluate potential savings. For instance, entering 1 point (1% of the loan amount) into the Mortgage Point Calculator can provide insights.

**FAQs:**

*What are mortgage points?*Mortgage points are fees paid upfront to lower the interest rate on the loan.*How do points affect monthly payments?*Buying points typically lowers monthly payments by reducing the interest rate.*Is it worth buying points on a mortgage?*It depends on factors like how long you plan to stay in the home; the longer, the more potential savings.*Can points be financed in a mortgage?*Yes, but financing points increases the loan amount and monthly payments.*How are points calculated?*Points are calculated as a percentage of the loan amount, with each point equal to 1%.

**Conclusion:** The Mortgage Point Calculator provides valuable insights into the potential savings associated with adjusting points on your mortgage. Evaluate whether buying down your interest rate aligns with your financial goals. For personalized advice, consult with mortgage professionals.