I am refinancing ot 7 year arm should i pay more at closing for a lower rate?

Relatively few people actually pay discount points to lower their rate, although it is highly advertised from a lot of companies as a teaser... It is all about the cost and the payback. How long do you plan on living in the home, what is the cost, and what is the savings... Does the math make sense?? www.MortgagesUnlimited.biz

Hello Peterkobe844,This is a question that can only be answered intelligently with more information provided. You basically want to look at the savings you'll have with a lower rate and compare it to the cost of obtaining that rate. Your loan amount and time you anticipate being in your home both weigh heavily in figuring out what is best. Feel free to reach out to me and I'd be happy to provide you a detailed analysis of your situation, which will allow you to make an informed decision on what is best for you.Scott

That depends on if you will end up saving more over time with the lower rate in comparison to the cost to obtain it. How long do you plan on being in the home and how much will you save with that lower rate in that time frame? That's how you can determine if it is worth the cost.

Hi Peter, You should be looking at a variety of options for loan programs as well as a variety of rate and cost options within those programs. Then the pros and cons of each should be laid out and discussed with you as well as all the numbers relating to the break even point as well as how far ahead you can be down the road, or how far behind. Weigh these against your plans as well as what happens if your plans drastically change. I have many clients that I spend hours looking at all of this on order for them to make the best educated decision. You should be doing the same in my opinion! I'm happy to help with the financing or just give you advice. If you need more information, or a competing rate quote call, email or use my live support button to discuss or get in touch with me. Web Address for live chat or quote is: http://www.loansfromrob.com/quote/ Email is robertlh66@verizon.net and direct phone is 240-752-7549. Good Luck -- Rob Hanson

I am not sure if you are saying you are refinancing into a 7yr arm or out of one. If you are going into an arm, it most likely will not make sense to pay points. On average for every point you pay you reduce your rate by .25%. The break even point for this is usually 5 yrs. approx. If you are going into a fixed product from an arm than it depends on how long you will be staying in the home. If you plan on saying there for 5 yrs. then 1 point may be OK. If you are planning on staying there for 10 yrs. than 2 points are OK etc. You can only usually pay 2 points on average. Barclay Butler, Barclay Butler Financial Inc. 224-420-9990 or bbutler@barclaybutlerfinancial.com

For almost all loan scenarios, it never pays to buy down the rate.. The only situation where it might make sense is if your purchasing a home and the seller has agreed to give you more contributions than necessary to close your transaction.. in this scenario, the borrower can use the excess to buy down the rate, but this is the only time I've ever really seen it to be beneficial.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

To answer correctly we would need to speak with you, as there are many questions to be asked. Your mortgage adviser should go over all your options based on all your information. Discuss your short term and long term goals and your mortgage pro can give you the best options available.