What is the advantage of buying down your interest rate?

[(former)FormerSanDiegan]

I would look at it this way.

How much is the buy down costing you ?
e.g. $2000

What is your return ?
e.g. $60 per month reduction in payment

Can you do better elsewhere with your $2000 investment ?

[Anonymous]

I believe the cost of buying down is tax deductible.

[Anonymous]

I believe the cost of buying down is tax deductible.

[Anonymous]

I believe the cost of buying down is tax deductible.

[Anonymous]

I believe the cost of buying down is tax deductible.

[Anonymous]

I believe the cost of buying down is tax deductible.

[UCGal]

You need to calculate the break even point where the lower payment has covered the added closing costs.

Then determine if you’ll be in the house longer than that.

If you think this is a “few years” home – it may not make sense to buy down the rate.

If you think this is a “forever” home – and your job is stable so there’s little chance you’ll be forced to relocate for work… etc.. Then it can make sense to buy down point.

Here is a whole list of calculators to play with.

http://www.google.com/search?hl=en&q=break+even+point+mortgage+points+calculator&aq=f&oq=&aqi=

[UCGal]

You need to calculate the break even point where the lower payment has covered the added closing costs.

Then determine if you’ll be in the house longer than that.

If you think this is a “few years” home – it may not make sense to buy down the rate.

If you think this is a “forever” home – and your job is stable so there’s little chance you’ll be forced to relocate for work… etc.. Then it can make sense to buy down point.

Here is a whole list of calculators to play with.

http://www.google.com/search?hl=en&q=break+even+point+mortgage+points+calculator&aq=f&oq=&aqi=

[UCGal]

You need to calculate the break even point where the lower payment has covered the added closing costs.

Then determine if you’ll be in the house longer than that.

If you think this is a “few years” home – it may not make sense to buy down the rate.

If you think this is a “forever” home – and your job is stable so there’s little chance you’ll be forced to relocate for work… etc.. Then it can make sense to buy down point.

Here is a whole list of calculators to play with.

http://www.google.com/search?hl=en&q=break+even+point+mortgage+points+calculator&aq=f&oq=&aqi=

[UCGal]

You need to calculate the break even point where the lower payment has covered the added closing costs.

Then determine if you’ll be in the house longer than that.

If you think this is a “few years” home – it may not make sense to buy down the rate.

If you think this is a “forever” home – and your job is stable so there’s little chance you’ll be forced to relocate for work… etc.. Then it can make sense to buy down point.

Here is a whole list of calculators to play with.

http://www.google.com/search?hl=en&q=break+even+point+mortgage+points+calculator&aq=f&oq=&aqi=

[UCGal]

You need to calculate the break even point where the lower payment has covered the added closing costs.

Then determine if you’ll be in the house longer than that.

If you think this is a “few years” home – it may not make sense to buy down the rate.

If you think this is a “forever” home – and your job is stable so there’s little chance you’ll be forced to relocate for work… etc.. Then it can make sense to buy down point.

Here is a whole list of calculators to play with.

http://www.google.com/search?hl=en&q=break+even+point+mortgage+points+calculator&aq=f&oq=&aqi=

[AK]

And if you’re going with an assumable loan (I think that applies to most FHA and VA loans), buying down that rate may enhance your future resale value.

[AK]

And if you’re going with an assumable loan (I think that applies to most FHA and VA loans), buying down that rate may enhance your future resale value.

[AK]

And if you’re going with an assumable loan (I think that applies to most FHA and VA loans), buying down that rate may enhance your future resale value.

[AK]

And if you’re going with an assumable loan (I think that applies to most FHA and VA loans), buying down that rate may enhance your future resale value.

[Author]

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