Would a high point low interest mortgage loan be okay if I don't know how long I'm going to keep the home?

Answer 1

Most homes are kept for 6 to 7 years.
But your answer depends on how long you think you'll stay. For a short period that is NOT a good deal.

Answer 2

NO. This is only a good idea when you definitely know that you will sell the property in as few as three years. Points are usually kept in the pocket of the loan representative, beware. I have a real estate license in two states and have been in the business for twenty years. Unless your credit is way awful you should not have to pay points. Go to a direct lender like Wells Fargo or Bank of America. They may have a narrow criteria but they are honest. If you find a lender who will be "creative" and bend the rules for you just think of this. Lying on a loan application or any part of the lending process is a FEDERAL CRIME. I have seen this happen more than once and seen the feds after people.

Answer 3

If you don't know already, the answer is NO. Any time you are offered to pay points to buy a lower rate, you should be shown clearly what the savings would be.

It can take anywhere from 3-7 years to recoup those points. Only after that period will you begin to actually save money. That break-even point should also be mapped out for you by your loan officer.

If you think you're out of the house in a couple years, it might even pay to take a higher rate, lower cost loan.

Answer 4

The rule of thumb is if you can re-coop the money you paid in points in three years then it was worth it but if you can not re-coop the paid points in three years then the answer is no. Also if you do not plan on being in the home for more than 5 years, the answer is also no.Todays rate was 5.875% on a 30 year fix with no points. A local mortgage broker should be able to get you the best rate out there.

Answer 5

contact. www.dotheloan.com, they can help you with the best loan to suit your needs.