Скачать или смотреть Paying Points for a Mortgage?

A mortgage point is equal to 1% of the total cost of the mortgage.

So, if you are getting a mortgage for $150,000, then it will cost you $1,500 per point.

Paying points at closing can reduce your interest and bring you savings.

Generally, you would need to stay in your house for a number of years.

It really will not help if you are not going to stay long.

Let us look at this example.

If you buy a house for $100,000 at 7.5% interest, then you would be paying around $700 per month.

If you spend $1,000 to buy one point, this will reduce your interest to $7.375%, and payment to $ 691.

The difference in your payments is now around $9.

Divide ($1,000 / $9).

The answer of 111, which is the number of months you need to live there in order to break even.

If you plan on staying for a shorter time period, then you may want to reduce your costs other ways.

This can be done through paying a larger down payment.

Also, when you go to get your mortgage, get at least two quotes.

All you need to do is to compare them carefully.

Before long, you will find that choosing the best of the offers will enable you to save possibly thousands of dollars over the lifetime of the mortgage.

Please call Jacob Varghese at 408-469-5086 for quote before you sign the dotted line