cancel
Showing results for 
Search instead for 
Did you mean: 

Paying points on a new mortgage to lower interest rate

New Visitor

Paying points on a new mortgage to lower interest rate

I have great credit over 800.  Is it worthwhile to pay for 1 or 2 points and lower the interest rate?  If not, why?

Message 1 of 3
2 REPLIES
Super Contributor

Re: Paying points on a new mortgage to lower interest rate

it pays off over time.

just calculate the breakeven point.

 

you lose only if you dont stay in the property past that breakeven point.

 

 

Retired Lender
Message 2 of 3
Highlighted
Moderator Emeritus

Re: Paying points on a new mortgage to lower interest rate


razzwoman wrote:

I have great credit over 800.  Is it worthwhile to pay for 1 or 2 points and lower the interest rate?  If not, why?


I paid 2 points when I did my refi in 2003 because I knew I'd be here for many years.

 

In other words what DallasLoanGuy said!  Smiley Happy

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 3 of 3