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WWYD re:paying pts for refi?
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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WWYD re:paying pts for refi?
I can get a 5% rate if I pay down 1/4 pt. which is about $1000 or take a rate of 5 1/8% w/no pts. The difference between the 2 rates on my monthly mortgage payment is about $28/mo. (or $336/yr). Either way I save myself at least $360/mo. on my mortgage payment 
Would you lay out the extra $1,000 for the 1/4 pt. to save yourself the extra $28/mo.?
TIA!!!!! DH is of no help on this one 
ETA: Also is 5% a good rate right now? I checked the rates online and it seems that is where they're at.
Message edited 5/14/2009 1:17:27 PM.
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Posted 5/14/09 1:16 PM  |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: WWYD re:paying pts for refi?
If you don't plan on moving or refinancing within the next 5 years, I would pay for the point (that was the rule of thumb we were told when buying).
We are refinancing our rental condo and we just got 5% for a rate on that (without points).
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| Posted 5/14/09 2:00 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: WWYD re:paying pts for refi?
Posted by ali120206
If you don't plan on moving or refinancing within the next 5 years, I would pay for the point (that was the rule of thumb we were told when buying).
We are refinancing our rental condo and we just got 5% for a rate on that (without points).
If our home value goes back up significantly there is a chance we would sell our house depending on if we decide to have a 3rd child. We would need an extra bedroom.
And it's not a full pt, only 1/4 pt. which will cost us about $1,000 extra at closing for our loan amount.
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| Posted 5/14/09 2:21 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: WWYD re:paying pts for refi?
how many years does it add to your mortgage? (how many years have you been in the house) - you also have to factor in those months that you will be paying.
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| Posted 5/14/09 3:14 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: WWYD re:paying pts for refi?
Posted by Erica
how many years does it add to your mortgage? (how many years have you been in the house) - you also have to factor in those months that you will be paying.
We have only been in the house for 3 yrs.
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| Posted 5/14/09 4:00 PM |
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