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New Visitor
Posts: 1
Registered: ‎03-10-2011
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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?

Super Contributor
Posts: 6,875
Registered: ‎07-03-2007
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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.

 

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

Moderator
Posts: 17,419
Registered: ‎07-14-2009
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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".

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