Financing in Oak Park>Question Details

Refiance, Home Owner in Oak Park, IL

I would like to refinance my home for a lower interest rate, The balance is 85,000.00; my current rate is 5.75 fixed, 12 years left. What are points?

Asked by Refiance, Oak Park, IL Thu Dec 9, 2010

Help the community by answering this question:


Points are a percentage of the loan amount. If you are borrowing $85,000 one point would be $850. Points are used to pay the origination fee to a lender and or pay to reduce the rate. If they are offering you 4.75% note rate, you may be able to pay points and obtain 4.50% note (these rates are for illustration only).
As a lender, if you came to me I would consider what your benefit might be against the cost of refinancing and look at no more than a 15 year term unless you were consolidating debt. If you receive enough benefit to pay back the potential costs within a year or two, it might make sense.
Get a hold of a couple local lenders and discuss what the total fees might be as well as the rate. Rates can always be offset by higher or lower fees.
I hope this was helpful.
0 votes Thank Flag Link Thu Dec 9, 2010
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