<PRE><B>Question 260613</B>
points are usually 1% of the cost of the mortgage.


if the mortgage is $170,000, then 1 point = .01 * $170,000 = $1,700.00


3 points is equal to $5,100


if you take a 20 year mortgage at 9% a month with 0 points, then your total costs are as follows:


up front closing:   $1,200


monthly payments:  $1,529.53


if you take a 20 year mortgage at 8.25% a month with 3 points, then your total costs are as follows:


up front closing:     $1,200
up front points:      $5,100

total closing:       $6,300


monthly payments:    $1,448.51


the difference in your monthly payments are:   $81.02


the additional up front investment of $5,100 is earning you $81.02 per month for a period of 20 years.


you will recoup this $5,100 investment without interest in 62.94742039 months.


</PRE>