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AK.
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May 26, 2009 at 8:51 PM #15761May 26, 2009 at 9:09 PM #406005
an
Participant200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.
May 26, 2009 at 9:09 PM #406553Participant200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.
May 26, 2009 at 9:09 PM #406492Participant200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.
May 26, 2009 at 9:09 PM #406701Participant200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.
May 26, 2009 at 9:09 PM #406250Participant200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.
May 26, 2009 at 9:32 PM #406706george
ParticipantAsk your mortage company to tell you how long it will take to break even on the additional $2000 you are paying up front to buy down the interest rate. If you think you will own the house longer than that you should do it. Also, you get to claim the $2000 in points as a tax deduction this year. For people with a relatively steady income that’s often an advantage since you get the tax benefit sooner.
May 26, 2009 at 9:32 PM #406255ParticipantAsk your mortage company to tell you how long it will take to break even on the additional $2000 you are paying up front to buy down the interest rate. If you think you will own the house longer than that you should do it. Also, you get to claim the $2000 in points as a tax deduction this year. For people with a relatively steady income that’s often an advantage since you get the tax benefit sooner.
May 26, 2009 at 9:32 PM #406558ParticipantAsk your mortage company to tell you how long it will take to break even on the additional $2000 you are paying up front to buy down the interest rate. If you think you will own the house longer than that you should do it. Also, you get to claim the $2000 in points as a tax deduction this year. For people with a relatively steady income that’s often an advantage since you get the tax benefit sooner.
May 26, 2009 at 9:32 PM #406009ParticipantAsk your mortage company to tell you how long it will take to break even on the additional $2000 you are paying up front to buy down the interest rate. If you think you will own the house longer than that you should do it. Also, you get to claim the $2000 in points as a tax deduction this year. For people with a relatively steady income that’s often an advantage since you get the tax benefit sooner.
May 26, 2009 at 9:32 PM #406497ParticipantAsk your mortage company to tell you how long it will take to break even on the additional $2000 you are paying up front to buy down the interest rate. If you think you will own the house longer than that you should do it. Also, you get to claim the $2000 in points as a tax deduction this year. For people with a relatively steady income that’s often an advantage since you get the tax benefit sooner.
May 26, 2009 at 10:06 PM #406731
CoronitaParticipant[quote=AN]200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.[/quote]
Dumb question…Assuming the buy down cost from 4.75% to 4.25% is $10k, doesn’t this depend on (a) where you’re going to get the $10k from and (b) inflation?
I’m thinking of two simple cases…
Case 1: the $10k is coming out of one’s pocket. In this scenario, the question seems like which is worth more…
*$10k in present dollars + accrued interest on that $10k over 30 years
OR
*$21.6k spread out over 30 years, factoring in inflation.Case 2: I guess in theory you could choose not pay the $10k out of pocket, but instead roll that into your loan (…Loan Officers/Brokers, correct me if I’m wrong if you can/or cant do this…) In this scenario, would the comparison be more accurate comparing
*200k loan at 4.75%
versus
*210k loan at 4.25%If so, $210k at 4.25% for 30 years is $1033/month or $10 less each month. So effectively, the difference would be $3600 difference over 30 years.
(assuming you could quality to borrow $210k). I suppose there are other ways to finance this $10k too, I won’t go there though.Then the question is whether you are planning to stay there for 30 years to save that difference.
Disclaimer: I admit, my math and logic is often rusty at times. I’m sure I’m forgetting other variables that tilt things in favor buying down the rate. My post is a more of a question as how one does this comparison than proposing an answer….
May 26, 2009 at 10:06 PM #406280CoronitaParticipant[quote=AN]200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.[/quote]
Dumb question…Assuming the buy down cost from 4.75% to 4.25% is $10k, doesn’t this depend on (a) where you’re going to get the $10k from and (b) inflation?
I’m thinking of two simple cases…
Case 1: the $10k is coming out of one’s pocket. In this scenario, the question seems like which is worth more…
*$10k in present dollars + accrued interest on that $10k over 30 years
OR
*$21.6k spread out over 30 years, factoring in inflation.Case 2: I guess in theory you could choose not pay the $10k out of pocket, but instead roll that into your loan (…Loan Officers/Brokers, correct me if I’m wrong if you can/or cant do this…) In this scenario, would the comparison be more accurate comparing
*200k loan at 4.75%
versus
*210k loan at 4.25%If so, $210k at 4.25% for 30 years is $1033/month or $10 less each month. So effectively, the difference would be $3600 difference over 30 years.
(assuming you could quality to borrow $210k). I suppose there are other ways to finance this $10k too, I won’t go there though.Then the question is whether you are planning to stay there for 30 years to save that difference.
Disclaimer: I admit, my math and logic is often rusty at times. I’m sure I’m forgetting other variables that tilt things in favor buying down the rate. My post is a more of a question as how one does this comparison than proposing an answer….
May 26, 2009 at 10:06 PM #406522CoronitaParticipant[quote=AN]200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.[/quote]
Dumb question…Assuming the buy down cost from 4.75% to 4.25% is $10k, doesn’t this depend on (a) where you’re going to get the $10k from and (b) inflation?
I’m thinking of two simple cases…
Case 1: the $10k is coming out of one’s pocket. In this scenario, the question seems like which is worth more…
*$10k in present dollars + accrued interest on that $10k over 30 years
OR
*$21.6k spread out over 30 years, factoring in inflation.Case 2: I guess in theory you could choose not pay the $10k out of pocket, but instead roll that into your loan (…Loan Officers/Brokers, correct me if I’m wrong if you can/or cant do this…) In this scenario, would the comparison be more accurate comparing
*200k loan at 4.75%
versus
*210k loan at 4.25%If so, $210k at 4.25% for 30 years is $1033/month or $10 less each month. So effectively, the difference would be $3600 difference over 30 years.
(assuming you could quality to borrow $210k). I suppose there are other ways to finance this $10k too, I won’t go there though.Then the question is whether you are planning to stay there for 30 years to save that difference.
Disclaimer: I admit, my math and logic is often rusty at times. I’m sure I’m forgetting other variables that tilt things in favor buying down the rate. My post is a more of a question as how one does this comparison than proposing an answer….
May 26, 2009 at 10:06 PM #406035CoronitaParticipant[quote=AN]200k loan @ 4.75% for 30 years = $1043/month payment
200k loan @ 4.25$ for 30 years = $983/month paymentOver 30 years, it’ll cost you $21,600 more to go w/ the 4.75%.[/quote]
Dumb question…Assuming the buy down cost from 4.75% to 4.25% is $10k, doesn’t this depend on (a) where you’re going to get the $10k from and (b) inflation?
I’m thinking of two simple cases…
Case 1: the $10k is coming out of one’s pocket. In this scenario, the question seems like which is worth more…
*$10k in present dollars + accrued interest on that $10k over 30 years
OR
*$21.6k spread out over 30 years, factoring in inflation.Case 2: I guess in theory you could choose not pay the $10k out of pocket, but instead roll that into your loan (…Loan Officers/Brokers, correct me if I’m wrong if you can/or cant do this…) In this scenario, would the comparison be more accurate comparing
*200k loan at 4.75%
versus
*210k loan at 4.25%If so, $210k at 4.25% for 30 years is $1033/month or $10 less each month. So effectively, the difference would be $3600 difference over 30 years.
(assuming you could quality to borrow $210k). I suppose there are other ways to finance this $10k too, I won’t go there though.Then the question is whether you are planning to stay there for 30 years to save that difference.
Disclaimer: I admit, my math and logic is often rusty at times. I’m sure I’m forgetting other variables that tilt things in favor buying down the rate. My post is a more of a question as how one does this comparison than proposing an answer….
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