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jandt2006
LIF Adult
Member since 8/05 1338 total posts
Name:
Teresa
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mortgage questions!
i know this probably has been asked before but is it a good idea to pay points to get a lower interest rate? we should be closing in january.
thanks!
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Posted 11/17/05 5:52 PM  |
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Prudential Douglas Elliman Real Estate
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checka
She's here!
Member since 5/05 1769 total posts
Name:
Me
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Re: mortgage questions!
It depends on how long you are planning on staying in the house. When we were looking at this it came out to 5 years that it would take to make up the money that was paid up front. After that, it would be money that you are saving. If you know that you will be staying in the house longer than it would take you to "make up" the point you paid then if might be worth it. If not, or you're not sure if you will stay there long, I wouldn't do it.
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| Posted 11/17/05 6:08 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: mortgage questions!
I would never pay points unless I knew I was NEVER moving. And even then I probably wouldn't pay the points.
I would just shop around to find a better rate. There are companies out there that will give you a killer rate... but you have to pay fees that are similar to points.
But I have found with paying fees... you get better rate discounts over paying points. But thats just my opinion.
Plus if you pay any points... you lose out if you ever want to re-fi.
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| Posted 11/17/05 7:01 PM |
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jandt2006
LIF Adult
Member since 8/05 1338 total posts
Name:
Teresa
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Re: mortgage questions!
oh ok, i signed up with a mortgage broker though and he said i was approved at one bank. so i have to stick with that bank only right?
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| Posted 11/17/05 7:14 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: mortgage questions!
Posted by jandt2006
oh ok, i signed up with a mortgage broker though and he said i was approved at one bank. so i have to stick with that bank only right?
You don't have to stick with anybody until the day you close.
Did you give this guy any money? If not... you owe him no obligation.
Hell... even if you gave him some buks... you can still find someone else.
I paid Chase $250 to pre-approve me and lock me in at 5.75%. A month and a half later... i was offered 5.375% through a broker and I took that and dropped Chase.
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| Posted 11/17/05 7:23 PM |
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jandt2006
LIF Adult
Member since 8/05 1338 total posts
Name:
Teresa
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Re: mortgage questions!
yeah a little over 500..he's a mortgage broker
Message edited 11/17/2005 7:49:23 PM.
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| Posted 11/17/05 7:48 PM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: mortgage questions!
You have FM
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| Posted 11/17/05 8:44 PM |
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jandt2006
LIF Adult
Member since 8/05 1338 total posts
Name:
Teresa
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Re: mortgage questions!
are points considered pmi?
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| Posted 11/18/05 5:44 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: mortgage questions!
Posted by jandt2006
are points considered pmi?
No. PMI is a monthly fee you pay if you finance a loan and your loan to value is above 80%. (you put less than 20% down)
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| Posted 11/18/05 6:25 PM |
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