jk70
Junior Member
Joined: Jan 3, 2011 16:39:57 GMT -5
Posts: 154
|
Post by jk70 on Feb 28, 2011 13:48:31 GMT -5
I don't think you would based on my analysis but wondering if there is any good reason too.
A short into my analysis:
I can pay 4.50% with points costing 8948.10 (actually includes closing costs, too) which saves me 918.96 per year vs the below (except year 1 of course where my cash outflow is 8029.14).
I can pay 4.88% with no points but closing costs of 1124.70. The difference b/t the 2 is 7823.40 (8948.10 - 1124.70). Invest that at a conservative 7.89% and in 12 years I have 19461.21
Therefore, it seems to me that I shouldn't pay points. any reason i may be wrong?
|
|
zuzu
Familiar Member
Joined: Jan 14, 2011 16:06:23 GMT -5
Posts: 569
|
Post by zuzu on Feb 28, 2011 13:51:01 GMT -5
The points "pay down" your mortgage % rate so you'd just need to do the math to see if it's worth it to you over the life of the loan or however long you plan to keep the house.
|
|
cronewitch
Junior Associate
Joined: Dec 20, 2010 21:44:20 GMT -5
Posts: 5,974
|
Post by cronewitch on Feb 28, 2011 14:21:48 GMT -5
Most people don't profit from the points because they sell or refi before it is worth it.
|
|
