1) Yup, sometimes more, sometimes less, depends on the rates that day and how much you buy the rate down
2) The points are tax deductible either way if I recall correctly (check with your tax advisor) but by rolling it in, you are not coming up with the $ out of pocket but are paying it back over 30 years.
3) It can be worthwhile... it all depend on how long you want to stay in your house and how much it costs to buy down the rate.
I'm in the process of buying a house and I'm looking at doing a small rate buydown, but too much buydown ends up costing too much.... more
This is a trick question......
The reason I say that is because there is a lot more that goes into making this decision then "Yes" or "No".
1) How long are you going to live there?
- If it is for 30 years then "Yes" you might want to refinance because the closing cost you are going to pay up front to refi will take you 6+ years to get back with your lower rate. Making it worth your while to refi because you will receive a financial benefit.
2) Is your current payment difficult for you to make?
- Depending on the price of your home you might only save a few $$ a month on your payment when you refi. Now if your home is more expensive that is different. A small reduction in payment might not be worth paying all of the up front fees to refi because the NET Financial gain will not be worth it.
These are just a few of the questions you need to ask yourself before doing a refinance. If you would like more help please feel free to visit my web link below.