Should I Pay For Points When Buying a House?

Whether or not you should pay for points when buying a house depends on your specific financial situation and long-term goals. Points, in the context of a mortgage, are a form of prepaid interest that can lower your mortgage interest rate over the life of the loan. Each point typically costs 1% of the total loan amount and can lower your interest rate by a certain percentage, often 0.25% per point, although this can vary. Here are some factors to consider when deciding whether to pay for points: 1. Your Financial Situation:– Do you have the funds available to pay for points upfront without straining your finances?– Will paying for points affect your ability to cover other homeownership costs like a down payment, closing costs, and moving expenses? 2. How Long You Plan to Stay in the Home:– If you plan to stay in the home for a long time, […]

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