[quote=asianautica][quote=carlsbadworker]
However, I don’t think “it is extremely foolish to want a no cost or no fee loan, gambling that rates will go lower.” It really depends on individual situation (e.g. how much cash you have on hand, what job security youhave, what is your overall financial plan, etc).
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I think I’ll side w/ HLS on this one. If you don’t have a few grand to buy down rates, then you’re probably extending a little too much to buy the house. If you are not sure of your job security, then you shouldn’t be buying a house. Point is, If you can’t afford to pay a few grand up front to get you a better rate, you should rethink the house you’re buying. It might be too much for you. Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
Just because someone has a few thousand or a few tens of thousands does not mean they should spend it to lower the rate. It depends on how long they plan to stay in the property and the amount of time it takes to recoup those costs.
One might be willing to pay a higher rate and save their cash if it takes more than 3 or 4 years to break even on the costs one is paying.
The informed consumer should be offered a range of rates and costs and find the best rate/cost balance for their particular situation. This rarely happens.
