Mortgage Points Explained | You Can Buy Your Mortgage Rate Down!
Have you heard the term "Points" or "Paying Points" on a mortgage loan? What are points? Should I pay points?
Through the real estate home loan process, you will often hear the term, points & mortgage points the cost of which is directly related to low interest rates. The more points you pay the lower interest rate you will receive! It's basically a simple formula - the more points you pay the lower interest rate you will pay.
When you are ready to learn how to buy a house, to buy down a rate can be a great option for a lower payment. Every mortgage from FHA loan, VA loans, conventional, USDA, Jumbo loans all offer options to pay these points to lower an interest rate. part of the whole loan process is step number 1, you can apply for with an FHA home loan application online at http://www.FireYourLandlord.info and click on the apply for a loan button.
We will offer an analysis of if it makes sense to pay points before you do it. Often when looking online, many lenders will post a very low-interest-rate that is only available by paying points. It's is misleading advertising, so be careful with these companies. Paying points (1 point is exactly 1% of the loan amount) can be a very useful and smart thing to do. But... it's all in the math! Step number 1 is evaluating how long you plan to keep the home. If the answer is short term, it probably does not make much sense to pay mortgage points. When you take the total cost of the points, for this example I will use $3,000 and evaluate how much additional money you will save per month, let's say $50, divide the $50 per month into the $3,000 and the answer is 60. If you plan on keeping the home less than 5 years (60 months) then paying points would result in a loss for you.
If the goal is to keep the house for 15 years, then you would enjoy 10 years of savings at $50 per month!
Some of Chris Trapani's mortgage loan tips are buying a lower interest rate. You can buy a lower rate with most standard type mortgages. The term discount points are the points you would pay in order to have the lower rate. Through the home loan process from home loan application through the end stages of the loan, points on a mortgage remains a possibility. Should I pay points depends on 3 factors - How long will I be in the home and how long will it take to get the discount points back (monthly savings vs. outlay or money) and the last factor is cost. Can you afford the loan points to get the discount on the interest rate?
Whether paying a discount point or multiple discount points is a mortgage tip that is easily calculated with the most important item for understanding loan points is time! For how much time you will keep a mortgage will help determine whether it's through the FHA loan process or another type of loan, understanding origination fees vs. understanding lender credit and understanding loan points.
A discount point will purchase a lower rate for a mortgage while raising the rate has the opposite effect - understanding loan rebates are important to the rate and can help borrowers with less closing costs when money is tight!
Call me and I'll help you evaluate your individual circumstance and whether it's a good move for you! 310-350-2546
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
#fireyourlandlord #mortgagepoints #loanpoints
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Go To http://www.FireYourLandlord.info to Learn more and for more videos
It only takes 5-10 mins to get your process started.
Find Chris on social media
facebook - https://www.facebook.com/iwantyoutofireyourlandlord
linked in - https://www.linkedin.com/in/christrapanithemortgagepro/
Instagram - http://www.instagram.com/christhemortgagepro
Want to buy a home in Rancho Cucamonga, Inland Empire, San Bernardino, Riverside, LA County and Orange County? Know that you’re getting the best deal and not making the rookie mistakes when it comes to buying a home. Call the pro.
Chris Trapani "The Mortgage Pro"
NMLS# 240870
Cell: 310-350-2546
Commerce Home Mortgage
8311 Haven Ave, Suite 210
Rancho Cucamonga, CA 91730
Through the real estate home loan process, you will often hear the term, points & mortgage points the cost of which is directly related to low interest rates. The more points you pay the lower interest rate you will receive! It's basically a simple formula - the more points you pay the lower interest rate you will pay.
When you are ready to learn how to buy a house, to buy down a rate can be a great option for a lower payment. Every mortgage from FHA loan, VA loans, conventional, USDA, Jumbo loans all offer options to pay these points to lower an interest rate. part of the whole loan process is step number 1, you can apply for with an FHA home loan application online at http://www.FireYourLandlord.info and click on the apply for a loan button.
We will offer an analysis of if it makes sense to pay points before you do it. Often when looking online, many lenders will post a very low-interest-rate that is only available by paying points. It's is misleading advertising, so be careful with these companies. Paying points (1 point is exactly 1% of the loan amount) can be a very useful and smart thing to do. But... it's all in the math! Step number 1 is evaluating how long you plan to keep the home. If the answer is short term, it probably does not make much sense to pay mortgage points. When you take the total cost of the points, for this example I will use $3,000 and evaluate how much additional money you will save per month, let's say $50, divide the $50 per month into the $3,000 and the answer is 60. If you plan on keeping the home less than 5 years (60 months) then paying points would result in a loss for you.
If the goal is to keep the house for 15 years, then you would enjoy 10 years of savings at $50 per month!
Some of Chris Trapani's mortgage loan tips are buying a lower interest rate. You can buy a lower rate with most standard type mortgages. The term discount points are the points you would pay in order to have the lower rate. Through the home loan process from home loan application through the end stages of the loan, points on a mortgage remains a possibility. Should I pay points depends on 3 factors - How long will I be in the home and how long will it take to get the discount points back (monthly savings vs. outlay or money) and the last factor is cost. Can you afford the loan points to get the discount on the interest rate?
Whether paying a discount point or multiple discount points is a mortgage tip that is easily calculated with the most important item for understanding loan points is time! For how much time you will keep a mortgage will help determine whether it's through the FHA loan process or another type of loan, understanding origination fees vs. understanding lender credit and understanding loan points.
A discount point will purchase a lower rate for a mortgage while raising the rate has the opposite effect - understanding loan rebates are important to the rate and can help borrowers with less closing costs when money is tight!
Call me and I'll help you evaluate your individual circumstance and whether it's a good move for you! 310-350-2546
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
#fireyourlandlord #mortgagepoints #loanpoints
Like | Share | Comment and Subscribe
Go To http://www.FireYourLandlord.info to Learn more and for more videos
It only takes 5-10 mins to get your process started.
Find Chris on social media
facebook - https://www.facebook.com/iwantyoutofireyourlandlord
linked in - https://www.linkedin.com/in/christrapanithemortgagepro/
Instagram - http://www.instagram.com/christhemortgagepro
Want to buy a home in Rancho Cucamonga, Inland Empire, San Bernardino, Riverside, LA County and Orange County? Know that you’re getting the best deal and not making the rookie mistakes when it comes to buying a home. Call the pro.
Chris Trapani "The Mortgage Pro"
NMLS# 240870
Cell: 310-350-2546
Commerce Home Mortgage
8311 Haven Ave, Suite 210
Rancho Cucamonga, CA 91730
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