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I just got off the phone with Countrywide. They can lock me in at 5.125 with 2.375 discount points at $6,271.00. They're waiving 1/2 a percentage point because we're current Countrywide Customers. Without points the rate is 7.25.
He says that points are buying the rate down more than they ever have before.
I know it lowers our payment by like $400, but it increases our loan amount by almost $10K. It doesn't feel right spending more to save.
I just got off the phone with Countrywide. They can lock me in at 5.125 with 2.375 discount points at $6,271.00. They're waiving 1/2 a percentage point because we're current Countrywide Customers. Without points the rate is 7.25.
He says that points are buying the rate down more than they ever have before.
I know it lowers our payment by like $400, but it increases our loan amount by almost $10K. It doesn't feel right spending more to save.
Wow -- the points reduce the rate by 2.125 percentage points?
Seriously, though, you need to just look at the math. You'll recoup the money in 15 months. That doesn't count the fact that the $400 you'll pay in month 15 is worth less than the $400 you're putting out now, but given the economy these days, deflation is as likely as inflation. So if you think you're going to be in your house for 15 months, then I would do it. The savings will snowball the longer past 15 months that you stay there.
Other places are apparently offering lower rates (though of course that depends on credit score, etc., so YMMV). So you may want to shop around.
I just got off the phone with Countrywide. They can lock me in at 5.125 with 2.375 discount points at $6,271.00. They're waiving 1/2 a percentage point because we're current Countrywide Customers. Without points the rate is 7.25.
He says that points are buying the rate down more than they ever have before.
I know it lowers our payment by like $400, but it increases our loan amount by almost $10K. It doesn't feel right spending more to save.
Maybe I am reading this wrong, but it looks like you are getting ripped off. I got 4.75% with .75 point.
I just refinanced with my existing lender (Wells Fargo) yesterday and got 5.125 with no points, no cost. Thats the best rate [no points/no cost] that was available for people with top credit score.
I just got off the phone with Countrywide. They can lock me in at 5.125 with 2.375 discount points at $6,271.00. They're waiving 1/2 a percentage point because we're current Countrywide Customers. Without points the rate is 7.25.
He says that points are buying the rate down more than they ever have before.
I know it lowers our payment by like $400, but it increases our loan amount by almost $10K. It doesn't feel right spending more to save.
Check around. The points sound a bit high to me.
One of my clients got 5.25% with 0 points last Friday.
It does sound high, but a lot changed since last Friday. These days comparing the rates you got one week with those on another week is like comparing milk prices from 1950 with those today. We have seen rates drop by >1.5% from the end of November to last week, then up again ~.5% in the last week.
I got a 4.875 rate with a float down option. There is a 1% loan origination fee (which some people think of as pts even though the lender doesn't call it that).
Oh that was another thing I didn't like about the deal the dude was proposing... He said they wouldn't lower the rate unless it dropped 1% or more.
I didn't like it, but I don't know how saving $400 a month or more could be wrong.
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