The **Paying Points calculator** allows you to create different scenarios for mortgage points and credits at closing, offering clear insights to help your clients determine the best option for them.

## Calculating Mortgage Points

How to calculate **Mortgage Points **to provide different scenarios to your clients:

- Enter the total
**home loan amount**,**annual interest rate**(excluding points), and the**loan term**. - Proceed to the next step by clicking
**Points**. - Input the
**annual interest rate****with points**and the total number of**points paid**. - Click
**Calculate**.

The **Upfront Cost/Payment of Points** field will be generated along with the **Calculator Results** section. Below is a review of the three scenarios under **Calculator Results**:

- The first row depicts a scenario
**without points being paid**. - The second row illustrates a scenario that
**includes points**. - The third row displays the time it takes to
**recover the points**paid if the money was used to reduce the mortgage instead of paying points.

## Calculating with Credit

How to calculate scenarios in which **credit is applied or not applied** toward closing costs with the credit calculator:

- Provide the total
**home loan amount**,**annual interest rate**(excluding credit towards closing costs), and the**loan term**. - Click
**Credit**. - Input the
**annual interest rate****with the credit included**and specify the**credit amount**. - Click
**Calculate**.

A dollar amount will be automatically calculated for the credit in the **Credit ($) **field. If you need to edit this amount:

- Click into the field and make any adjustments needed.
- Click
**Calculate**to make adjustments to the**Calculated Results**based on the new credit amount.

The **Calculator Results** section will be generated once you click calculate. Below is a review of the two scenarios:

- The first scenario shows the loan
**without the credit applied**. - The second scenario demonstrates the loan
**with the credit applied**towards closing costs.

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