Would you buy points right now?
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Anonymous
| If you had asked me a few months ago, I would have said definitely not, because mortgage rates are going to come down soon and then we’ll refinance. But it seems less clear now that rates will come down in the near future (or even the more distant future). What are you all thinking about this? |
Anonymous
| Considering it - but will make that decision once I have a house under contract and discuss rates with my lender. Hard to say in advance. Agree that we can't bank on a lower rate any time too soon |
Anonymous
| I would not. A lot can happen in 10 years. If you have extra cash sitting around, front load your mortgage payments and pay off your mortgage sooner. |
Anonymous
|
Nope. Always go zero points and try to knock down any discretionary costs as low as possible. If you're in the home for the next seven years, a refinancing opportunity will come along.
If you are borrowing near the conforming max loan limit for a high cost area (like DC metro), then only a 50bps drop in rates will make it "worth it" to refinance a large principal balance. We serially refinanced from 2017 (when we bought home with only 10% down) to our final rate of 2.75% 30Y in 2021. I think our most expensive refinance cost us around $2K (don't include prepaids.....those are just costs you would have to eventually pay to insurance/taxes/etc), which we quickly recouped after six months of payments at the lower rate. Our final two refinances were cash flow positive because the lender was paying so many credits toward closing. |
Anonymous
| I did. We close in a few weeks and are planning to stay in our new home for a long while, and the way the rates are right now…it’s not looking like it’s going down. We were able to lock in the 6’s, With 1 point. It was the best scenario for us. |
Anonymous
| Don’t buy points. It will take you around 5 years to get the money back on your points. If rates drop even 1% you can refi. |
Anonymous
That's the problem we don't know when the rates will drop. It seems to be just heading in the opposite direction! Nearing 8%! |