February 03, 2006
Negotiating Mortgage Points
So how much do mortgage points save you in the long run? In most cases, buying mortgage points will only lower your interest rate slightly. Typically, each mortgage point you buy lowers your interest rate by 0.125 percent. So if you have a 6.5 percent rate, and you purchased one mortgage point, it would be lowered to 6.375. You will need to use a mortgage calculator to see how much you save each month. You should also calculate how long it will take before you reach the ‘break even’ point. The break even point is when you recover the cost of purchasing the mortgage points. There are four steps in calculating the break even point:
|
Related Products: |
Read more from this blogger: |
Posted on February 3, 2006 08:42 AM by Mortga79.
Filed in Mortgage Calculator under mortgage calculator.
Permalink 
| Comments (0)
