Refinancing - Points Vs. No Points

When refinancing a home mortgage you will get a lower interest rate if you agree to pay 1 or 2 "points". The loan manager may offer you "6.75% with no points" or "6.25% with 2 points". 2 points means that you will have to pay 2% of the total amount of the mortgage to the lender in addition to any closing costs. On a $200,000 loan, that's $4,000. Even with the lower interest rate, It can take 5 to 10 years to cover that additional expense. So if you aren't going to be in a house long term, it's better pass on the points.


By Fisher


Add your voice! Click below to comment. ThriftyFun is powered by your wisdom!

In This Article
Refinancing Your Home
Refinancing Your Home
Next >︎
Budget & Finance Home LoansSeptember 8, 2006
Halloween Ideas!
Ask a Question
Share a Post
You are viewing the desktop version of this page: View Mobile Site
© 1997-2016 by Cumuli, Inc. All Rights Reserved. Published by . Page generated on October 21, 2016 at 8:30:29 AM on in 3 seconds. Use of this web site constitutes acceptance of ThriftyFun's Disclaimer and Privacy Policy. If you have any problems or suggestions feel free to Contact Us.
Loading Something Awesome!