April 2011 
There are 1 blog entries for April 2011.
Should You Pay Points When Buying Real Estate?
Friday, April 22nd, 2011 at 5:50pm. 528 Views, 0 Comments.
When considering your financing options, whether or not to pay points is question that needs to be considered. It's basically an interest rate "buydown" and it allows the borrower to pay a flat fee (1% of the purchase price per point) to in order to have a lower interest rate over the life of the loan. The decision whether or not to pay points can be derived at by considering how long it will take to recoup your initial investment, versus the monthly savings you’ll get by buying down the interest rate.
For example:
One point = $2000 buys down the interest rate .5% and reduces monthly payment by $50/month. Dividing $50 into $2000, you will break even in 40 months or 3.3 years. If you intend to retain the loan for more than 3.3 years, this would be a…
My Account
Register
Recent Blog Posts
The Oakland Real Estate Market is HOT
I'm happy to say, that there is definitely a significant increase in activity compared to this time last year. Multiple offer... Add Comment Read MoreShort Sale Debt Cancellation Set to Go Away
Originally, when you did a short sale you were taxed on the amount that you were forgiven by the lender. This was a seri... 13Comments Read MoreChanges To FHA Mortgage Insurance Premium
The Federal Housing Administration recently announced an increase in the upfront Mortgage Insurance Premium. Mortgage insuran... 4Comments Read More
