Should you pay points?

When you are shopping for a mortgage you may hear about points. Points are a percentage that is added to a loan amount. For example, 1 point or 1% of a $300,000 loan would equal $3,000. Points are a way for you to pay upfront in order to get a lower rate. Many people ask whether or not you should pay paints and if it is worth it in the long run, however, it is dependent on your financial situation. Buyers beware! Even lenders who say that there are no points often increase the interest rate so that they can still make money on the loan. 

What is the right move for you?

The decision to pay points depends on your plans. If you’re only staying in your home for a couple of years, it may not be worth it to pay points. On the other hand, if you’re planning on staying longer, you could save thousands by paying points and reducing the interest rate.

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Do you want to find out more about mortgage rates with and without points? Contact us today to learn some tips that can help you to achieve your goal quickly and easily!  

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