Yea for me. Can't stop telling everyone

[the JoKeR]

Originally posted by wyn1370
Only complaint is interest rates have gone back up and 6.875 is the lowest I can get without paying points.

From what I hear, that isn't bad at all. Nobody I've talked to has beaten my 6.5 yet, but I just got REAL lucky on that one. You might be best taking it and running before the next rate increase. You can always refinance later if a good enough deal comes along.

Never did understand that point stuff.....

[wyn1370]

pionts are basically paying the interest up front at a discount, how they actually calculate it I'll never know. I might not even be able to get the 6.875 anymore, so I better get moving on closing this deal.

[dawump]

I could get pretty low points on a 1 year FHA variable, but looking at the last two cycles of interest rates, they will be UP this time next year.

I'm going to be paying 7.5% on an FHA but actually this works out more advantageous than 7.25 based on the buying "points" thing. I could buy down this .25 for $2500, but it only saves $40 / month. That is a 5 year break even, and I bet I don't have this loan for more than two.

I'd rather have money in the bank to buy exciting stuff like a new sofa.. and an inteliframe ;-)

So, I guess if I read it right, when you look at buying down points it's worth seeing how much you actually save a month, and then try to work out how long you'll actually keep the loan for.

Keith