Should I Pay Mortgage Points For A Lower Interest Rate?

When you apply for a mortgage you are often presented with a choice, should you:

Use this mortgage calculator to determine whether you should pay discount points and, if so, what is the best combination of points and interest rate for you.

Example: Pay Mortgage Points or No Points?

Mortgage Points Calculator
Home Value $
Loan Amount $
I Have Enough Savings
To Cover Emergencies
I Have Lots of Money Left
At The End Of The Month
I Pay Off My Credit Cards
In Full Every Month
    = Required

Mortgage Points Calculator - Help

Credit Card
The total of the minimum monthly payments you are required to make on your credit cards. You should not include credit card balances that you pay off in full every month.
Discretionary Income
The amount of money left over from your income after you pay your current taxes, and essential expenses necessary to maintain a reasonable standard of living, such as your food, mortgage, rent, utilities, insurance, clothing, transportation, maintenance, child support and sundries.
Emergency Savings
Money you can use to pay for your expenses if you have an unexpected loss of income and/or increased expenses. Savings that covers 6-12 months expenses is a good start.
Home Value
The current market value of your home. At the time you buy a home this is often the purchase price of your home.
Loan Amount
The initial principal balance or your mortgage at closing.