Title: Calculate: Should the Millers Pay $9,000 for a Lower Mortgage Rate? Tagline: Should the Millers Pay $9,000 in Mortgage Points to Save 0.375% on Their $600,000 Refinance? Problem: The Millers, a dual-income couple in their early 40s with three children nearing college age, are considering refinancing their $600,000 mortgage. Their current interest rate is 6.25%. They've been offered a rate of 5.875% by paying $9,000 in mortgage points (1.5 points). They plan to stay in the house for at least 7 years, but with rapidly approaching college tuition bills, they need to determine if the upfront cost justifies the long-term savings, especially considering alternative investment opportunities. They're concerned about locking up cash that could be used for tuition or investments. Solution: Using our Mortgage Points Calculator, the Millers can determine the exact number of months it will take to break even on the $9,000 investment. By inputting the loan amount, new interest rate, old interest rate, and the cost of the points, the calculator displays the break-even point and the total interest saved over the life of the loan. Furthermore, it can reveal how that $9000 compares to other potential returns if invested in other assets. ROI: The calculator reveals a break-even point of 53 months. After 7 years (84 months), the Millers will have saved $15,750 in interest. The net savings after subtracting the initial $9,000 cost is $6,750. However, if they invested that $9,000 at even a conservative 5% annual return, they could have accumulated significantly more – potentially $12,762.82 over the same period. This means foregoing the points could lead to approximately $6,012 more money in their pocket. Description: Unsure if mortgage points are worth it? Our calculator shows you the exact break-even point and helps you make a financially sound decision, considering your family's long-term goals. Don't overpay for your mortgage – calculate your best option today. Category: Lead Gen