Mortgage Rates and Points

Should I Pay Points To Get A Lower Rate?

Remember! When you pay "points," you pay interest in a lump sum upfront to get a lower rate on your fixed rate mortgage. Each point costs 1% of the mortgage amount. So then the more points you pay upfront, the lower your mortgage rate can be.

So, which is the best for you? Pay more points up front to get a lower rate? Or Pay fewer points and a proportionatley higher rate? Perhaps a combination of the two options would work best for you?

Advice:

To decide, you need to consider: 

(1) Can you afford to make the upfront payment of points.

(2) How long do you expect to have this mortgage? The longer you plan to have your mortgage, the more it makes sense to pay for points upfront because you'll have a longer time to benefit from the lower rate. 

After considering these questions... click here, choose a mortgage calculator to see how much your monthly payments will be. Finally fill out the rate quote form and get competitive mortgage rate offers from a number of lenders.

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