Timeline for Mortgage points vs. down payment: How should I look at the break even point?
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| Mar 28, 2013 at 18:22 | comment | added | LasEspuelas | Also, you are right. I was assuming that 1 point would get me a 1/8% of a decrease, but my loan officer notified me that a full point will get me 1/4%. I think it varies from institution to institution. | |
| Mar 28, 2013 at 18:08 | comment | added | LasEspuelas | I understand this. But how do you decide when using method two. You are paying the same amount upfront, once with a point, once without it (the amount of the loan decreases when not using a point). It seems your monthly payment will always be lower in the case of the point (i.e. investing in points lowers your monthly payment more than increasing your down payment). | |
| Mar 28, 2013 at 1:28 | history | edited | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |
added 258 characters in body
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| Mar 28, 2013 at 1:23 | history | answered | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |