Is it better to pay more points on a mortgage to lower the interest rate?
95887
If you will stay for several years it usually makes sense. \n\nFind the difference in payments with the two rates and then plug into a financial caluculator. What you are looking for is it worth it to invest say $1500 for a point ($150,000 loan) to reduce the payment by say $50 a month.\n\nIf you can then see that the longer you keep it the more $50 bills you get. If you were going to be there 30 years, then is it worth getting $18,000 return for the $1500 investment? YES!\n\nIf you move out in three years is it worth getting $1800 for the $1500 investment? Maybe, but probably not as the rate of return is just a teency bit over 6%. \n\nThis is why there is no set correct answer, as you need to figure out how likely it is you will stay long enough to figure out if the particular interest rate returned is worth it.
2800
I just asked myself this question a couple of months ago. I ran a spread sheet with a side by side comparison of my 6 1/2% 30 year mortgage versus an equal dollar amount invested at 5% for the same term. You would expect to save quite a bit paying off the debt but you actuality save by keeping the mortgage.
753543
I'd say the most important thing is to get any outstanding debts paid off first if you can.  That will then obviously reduce your total monthy payments and then may give you a change to get a mortgage with less monthly payments or one for more money.
773865
yes. Interest rates are low. There are less buyers on the market, which gives you an advantage. Anxious sellers and developers/builders are offering many different incentives. Ask about them. The problem with waiting until Spring or Summer is that there are going to be more buyers and you will have a little less negotiating power.
872551
That's a pretty broad question, there.  Generally, you can get a lower rate, which will lower your payment.  However, even if you don't get a lower rate, you can still lower your payment by having your loan reset to 30 years.  There's a lot of factors involved, but if you want straight answers to your questions, email me.
193792
Possibly because you haven't been paying the minimum interest payments. I know on my interest only mortgage, they allow me to do this without penalty, essentially increasing my principle each month. They actually highlight an amount on my statement that is less than my interest, trying to trick me into paying less today. It's all part of the scam. Read your statement carefully and pay more than just the interest due.
183719
A pre-payment penalty really does not matter.  Nothing matters except for the fact that if there is enough equity in your home, then you can continue to refi.  Whether it is a smart idea financially, that should be the question.  This is not recommended, unless the cash you are recieving back from the refi is going into accounts which have interest rates that are going to give you a good enough return and heavily outweigh the interest in which you are paying to the bank.  Or, if you are going to invest the money into another peice of real estate.  Other than that, I would highly recommend against this practice.
127550
You should payoff your mortgage if you have the money anyway.  The tax credit isn't worth the interest payments on a 30-yr mortgage.
616725
Yes if your payments and interest rate is loweredd and it doesn't it is not expensive.\n\nYou should look into refinancing only if the above is true.\n\nThe advantages is that you would make lower monthly payments, though it might be spread over a longer period of time. If you can keep the same time frame for paying the loan off with lower payments that would be better.\n\nThe disadvantage is if you don't refinance to a lower rate and lowere payment you will continue to pay the same monthly payment as you are now which might be higher unless you look into the possibility of refinancing the loan.\n \nYou might try this link and see if they can offer you a better deal.\n\nwww.nextstudent.com\n\nI hope this  has been of some use to you, good luck.\n\n"FIGHT ON"
939815
There is NO optimal time to payoff a mortgage.  You are charged interest every single day that you have the loan.  The interest rate is calculated based on the current balance....until it's paid off.
78501
Personally I would wait, but it really depends on why you need to refinance.  If you REALLY need the money for bills or something of that nature then it may be worth it to refinance.  Everyones situation is different and if you only wish to refinance for a rate reduction look at it this way:\n\nLets assume your home is worth $400K\nIf you're paying a higher rate such as 11% because of credit issues or you got a terrible deal your monthly payment on a 30 year fixed is $3,809.29 (not including taxes and insurance.\n\nIf you refinance out of that rate and into 6% because of improved credit your monthly payment on a 30 year fixed is $2,398.20 (not including taxes and insurance.\n\nThat's a difference of $1411.09 and over 8 months that adds up to $11288.72\n\nSo, unless you REALLY are behind on bills and have to consolidate immediately it's going to be cheaper for you to wait.
162799
There is no average number of discount points.  Most lenders will offer anywhere from 0 to 3 points.  These aren't really "charged", either; YOU select and agree to the number of points. You're simply paying a premium for having a lower interest rate on the loan.\n\nIf you mean average mortgage interest rate, you can check here for rates in your area: http://mortgages.interest.com/index.asp?
252662
Yes, you will pay a higher interest rate and more points
906325
Yes - Thats about what mine was when I bought my house.\n\nLook into first time homeowner or similar programs through your state, that will help you get a better interest rate with an average credit score.
839845
Bad Idea. I find it hard to believe you'd get a better rate on a student load by using the mortgage (unless she didn't go through the gov't but only through a bank or used credit cards otherwise, the rates are extremely low and you can take lots of time to pay back). \nTrying to build a little equity? You must already have some equity otherwise you couldn't do this. They are not going to consolidate it into a loan for more than the property is worth.\nWhy waste that equity you have now already on something low interest, that you can take a lot of time to pay back.
949086
The interest rate is horrible, but keep building the score so if and when you borrow in the future the rate is more reasonable, like in the single digits. You have to repair the score somehow so its a good start.
176150
There are actually three variables that go into determining wht your interest rate will be Fico Score, Debt-to-Income Ratio and Loan-to-Value.  You can get a mortgage with any score.  Even sub 500 scores.  You might qualify for a loan now with your score but the interest rate is going to be higher.  If you are willing to pay the price I would say go for it and allow your mortgage payment history to build up your score.