30 Year Fixed-Rate Mortgage Without Points

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The 30 year fixed rate mortgage with no points is typically one of the most common scenarios chosen by homeowners.  Why? It results in lower closing costs which benefits most homeowners.

Most people don’t keep a mortgage for more than 5 to 7 years, so there is no point in having higher closing costs, because by the time you have recuperated those costs, you will likely have either sold your home or refinanced the mortgage.

Who Should Pay Points?

Refinancing

If you plan on selling your home in the near future (5 to 7 years) then it makes more sense not to pay discount points and go with a limited closing cost loan. Otherwise, by the time you recuperate the cost associated with your interest rate, you would have wasted your money/equity in your home.

Purchasers

If you have limited funds and don’t plan on retiring in your home, then you do not want to waste money in buying down the rate with discount points.  You would probably rather opt-in for the lowest interest rate with limited closing costs and keep your money in the bank.

Whether purchasing or refinancing, we can help you determine whether there is a cost benefit to not paying points.

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All rights reserved © 2024 Mortgage Expert, Inc. NMLS ID: 2412313 Location: 450 S Orange Ave, Suite 379, Orlando, FL 32801, FL 32746 | Phone: (407) 955-9235 Content provided by Shahram Sondi The information provided on this site is for basic informational purposes only and IS NOT intended as a substitute for professional or legal advice. Notice: SHAHRAM SONDI + CO (License #: CQ1049127) and Mortgage Expert (NMLS ID: 2412313) are both wholly-owned entities of Shahram Sondi (NMLS ID: 186790, License #: BK3225742). Due to this relationship, any referral between these two entities has the potential to financially benefit Shahram Sondi. Under no circumstance are you required to engage the services of one or both of these entities. View $1000 Best Rate Guarantee Terms & Conditions
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