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  • Will You Add? - Should You Purchase Points When Refinancing Your Mortgage?

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    ether purchase points is a good idea for you or not depends on if you will maintain the property long enough to recover the additional c
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    Buying points is a standard offer given to most people when they consider a mortgage refinance. This option was most likely presented to you when you applied for the initial mortgage and its benefits are equally as important to a mortgage refinance.

    Points are an upfront fee charged by the lender. This fee is separate from interest and is designed to increase the profit to the lender. The cost to purchase one point is equal to 1% of the total principal amount of the loan. By purchasing points will lower your interest rate.

    Whether purchase points is a good idea for you or not depends on if you will maintain the property long enough to recover the additional co

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    o you when you applied for the initial mortgage and its benefits are equally as important to a mortgage refinance.

    Points are an upfront fee charged by the lender. This fee is separate from interest and is designed to increase the profit to the lender. The cost to purchase one point is equal to 1% of the total principal amount of the loan. By purchasing points will lower your interest rate.

    Whether purchase points is a good idea for you or not depends on if you will maintain the property long enough to recover the additional c

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    pfront fee charged by the lender. This fee is separate from interest and is designed to increase the profit to the lender. The cost to purchase one point is equal to 1% of the total principal amount of the loan. By purchasing points will lower your interest rate.

    Whether purchase points is a good idea for you or not depends on if you will maintain the property long enough to recover the additional c

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    urchase one point is equal to 1% of the total principal amount of the loan. By purchasing points will lower your interest rate.

    Whether purchase points is a good idea for you or not depends on if you will maintain the property long enough to recover the additional c

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    ether purchase points is a good idea for you or not depends on if you will maintain the property long enough to recover the additional cost incurred from purchasing the points. For example, a lender gives Jane Jordan the option of a $90,000 loan at an 8% fixed interest rate. A 2-point purchase would cost $1800 due and payable at closing. The lender also offers a $90,000 loan at 9% with no points available. It will take over 2 ? years to recover the $1800 paid for points. If Jane plans to remain at that location for longer than that time she will break even or make a profit. If she anticipates relocation under that time frame, refinancing and purchasing points will co

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