Financing in Tolleson>Question Details

mlvr082011, Home Buyer in Phoenix, AZ

should I buy the interest rate down?

Asked by mlvr082011, Phoenix, AZ Wed Feb 15, 2012

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George Raymondo’s answer
Interests are so low now it may not make any sense to pay points to cut your payment down by a few bucks. Remember, the lower the interest you pay, the lower your homeowner deduction is. I encourage you to take a shorter term if you can afford it. Now's the time to take advantage of the market by cutting your interest paid to the banks. If noting else, send in those extra principle payment.

Also, make sure your doing the best loan for your set of circumstances. I can't tell you how many times I hear someone did a FHA loan when they could have done a USDA. The savings just in monthly mortgage insurance could have your hundreds of dollars and thousands over next several years and the USDA requires no down payment and delivers a lower monthly payment.

Best of Luck!
0 votes Thank Flag Link Fri Feb 17, 2012
Depends on the cost to you. Run the numbers both ways & see what makes the best financial sense.
0 votes Thank Flag Link Thu Feb 16, 2012
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