Friday, February 13, 2009

It Does Make Sense to Pay a Point

It used to be that the difference between a no-cost and cost refinance was about a .25% however today the difference can be as high as 1%. So consider both options in deciding which way to go.

 

The math basically involves determining how long it’ll take to recover your upfront costs. If it’s less than 2-3 yrs, and you plan to stay in the home for at least 5+ yr, than consider paying the costs.

 

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