I’m looking to refinance a mortgage and came across these lenders, see below. Can someone help me answer the following questions?
Why would a leader offer 0 points when everyone else is charging 1.800 - 2.000 pts?
Are points equivalent to basis points?
The points are calculated off the total principal amount to be refinanced, right? So if I decide to add the cost to the principal, they’ll use the total including the cost to refi? But won’t that cause a circularity?
Is the interest rate the only factor to consider?
What else should I focus on? It’s my first time going through this process as I am helping family.
apr factors everything rate apr fees, but just not the timing of the costs. poitns is basically a percentage of fees not similar to beeps as those are much smaller. points is basically upfront costs to get a lower rate which is typically a lower apr. if you plan to keep the mortgage for over 15 years, then paying for points may make sense. this is usualyl unlikely though, so best to just go with no upfront cost,no points. you can also get paid to get a mortgage but that usually raises the rates too much. so the best one imo is to do no cost. no points. etc etc.
That’s exactly how I did my mortgage. I think they capture you with no points, no fees, but then in the loan disclosures you’ll see there are most likely high closing costs, so I’m sure they’re getting paid.
If not let me know who you end up using. I found my mortgage lender from credit karma and they were able to lend me much more than Wells Fargo would.
I am old enough to remember when people were paying 18% and higher mortgage rates!!! You kids these days should be thrilled with the rates you’re getting!!!
better is pretty cheap, i found htem through one of these places. use nerdwallet mortgage. or bankrate. or zillowmortgage. they will compare mortgage brokers for you.
Much like never asking a woman her age, implying age is also rude with one exception: the -ita or -ito (in this case, indicating “little grandma/pa”). Don’t ask me why though, I just know the what. My Hispanic friend got super offended when I dismissively called her abuela.
One very important factor to consider is that interest on mortgages of 750k or below is tax deductible. That said, if it applies to you, the rate “almost” doesn’t matter as you will get that money back in taxes. It matters in a sense what you will be able to afford monthly. Of course, it is better to have a lower monthly pmt as you can use the savings to say reinvest in your portfolio in the beginning of the year rather than at the end (assuming upward trending markets). I got a bunch of quotes and went with Sebonic (part of Cardinal Financial). They gave the absolute best deal (I am not affiliated with them) so I highly recommend checking them out. The credit that they gave me essentially paid for the whole cost of doing it and some. I did accept a little higher rate for mine and I’m ok that cuz again I will get that money back on my tax return. It’s almost like the money makes a circle.
