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Is it worth to refi without points? Or is that the only way to make it worht the trouble?

by gastown556 from Gage, Oklahoma. Nov 2nd 2020 Reply


Steve Cooley (steve.cooley)
#5 ranked lender in Oklahoma - 16 contributions

Everyone's situation is unique and different. It depends on the monthly savings versus how long you plan on staying in the home. I'd be happy to take a look at your situation in helping you determine if its worth it or not. Let me know. 405-831-4457

Nov 2nd 2020
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,268 contributions

There are several variables in determining if paying points is wise. Essentially, paying points is pre-paying to the investor, a sum of money in exchange for a lower interest rate over the life of the loan. So, factors that go into the decision are length of time you will remain in the home/loan (the longer the better), how much are you pre-paying (the points paid) and the reduction in the monthly payment. Take the cost of the buy down and divide it by the monthly savings to determine how many months it takes you to recoup the investment. How does that coincide with your intended stay. As an example: Let's say your lender quotes you a P&I payment of $1350 with no points and for a $4,000 discount, the payment would be $1,298. Take $4,000 divide by $52 (the monthly savings of the lower payment, would result in you recouping your $4,000 investment in 77 months. If you plan to be in the home for ten years (120 months), you win. The shorter the recoupment period the better. Each scenario is different and you should have your Mortgage professional assist you in determining if and how much of a buy down makes sense. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except VA and we're pending approval in MA and NY. ~ www.ApplyYes.com 480-889-9000.

Nov 2nd 2020
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