Help...should I buy points toward my mortgage...what does this mean?
Bride2B93
Posted:
Member since
Help...should I buy points toward my mortgage...what does this mean?
I was told that the current rate is 6% but that we can buy a point to make it 5 7/8% . What is the best thing to do? Thanks!
DjPiLL
Posted:
Member since
Re: Help...should I buy points toward my mortgage...what does this mean?
I think its a bad move to buy points on a loan. Its like pre-paying interest early... and if you end up selling early those points are more or less lost.
Its the same idea of putting a down payment on a car lease. Makes no sense. Lets say you crash the car two weeks after buying it. You don't get your down payment back.
DjPiLL
Posted:
Member since
Re: Help...should I buy points toward my mortgage...what does this mean?
Also... if you think you may want to re-fi down the road... paying points now is a bad move.
You may be better off looking for a 'negative points' mortgage that will pay for all your closing costs up front... 0 money out of pocket at closing. You may end up with a slightly higher interest rate... but you can always refi down the road.
Here is a good link that discusses good/bad points of paying points. :D
