Property Statistics Co.
Owner; Adam Bradley
Compuserve # 72722,1760



Dear investor:

This short easy to run program is designed to aid the mortgage borrower in deciding if points are worth buying on a loan. Points are one percentage of the mortgage amount. One point on a $100,000 loan would be $1,000. 

Mortgage lender will offer points for sale in order to reduce the interest rate on the loan. You pay one or two points and the lender will drop the interest rate on the loan 1/2, 1/4, or 1/8 whatever the lender wants.

Think of it as buying a cheaper interest rate. 

To the borrowers view, the problem has been whether it is worth it to buy a point to knock down the interest rate on a loan. The answer has to do with how long you think you might live in the house. Making the correct choice on whether to buy points or not could save you thousands of dollars. If you buy a point, and only live in the home for two years or so, you could lose a good some of money; however, if you live past a certain time in the house you will save yourself a great deal of money if you would of bought points. The program figures how long you should live in the house in order for your purchase of points to reduce the interest rate on the loan will pay off. 


The program is easy to run and needs seven numbers to help you decide.  

1. Your monthly principle and interest payment for the lower rate loan. 

2. Your monthly principle and interest payment for the lower rate loan. 

3. Your lower interest on the lower rate loan.

4. Your higher interest on the higher rate loan.

5. The amount of money you will be spending on points to lower the interest rate of the loan. 

      Example)   A $104,000 loan at one point would be spending $1,004 for points.

6. The APR rate of your savings account, or any other investment vehicle were you would of been making interest on the money you used for points.


7. The length in months of your loan. Example 360.






