Should you pay points or take a higher interest?

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Portland, Oregon	August 21, 2008

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Mortgage Point Adviser

When you pay "points," you pay interest in a lump sum upfront to get a lower rate on your fixed rate mortgage. Each point costs 1% of the mortgage amount. The more points you pay, the lower your mortgage rate. So, which is the best for you? More points and a lower rate? Or fewer points and higher rate? To decide, you need to consider: (1) Whether you can afford to make the upfront payment now for points. (2) The length of time expect to have the mortgage. The longer you plan to have your mortgage, the more it makes sense to pay for points now because you'll have a long time to benefit from the lower rate. Answer the questions below and we'll advise you on what's best for you.

How long do you expect to stay in your next home?
Enter number of years:
Min:1 Max:80

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* Mortgage rate may include points. See rate tables for details. Click here.
* To see the definition of overnight averages click here.

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