(2) How much house can you afford?
This calculator is only offered as a conservative planning tool. For more precise guidelines about lending considerations that apply to your situation, please contact a mortgage lender. Much has changed recently in the mortgage market.

(3) Should you pay points on the mortgage?
Paying points for a lower interest rate is a trade off between paying money now versus paying money later. A point - equaling 1% of the total loan amount - is an upfront fee that reduces your monthly interest rate and total interest due over the life of a loan.