Originally posted by Bill Brady:
Denise and Kyle - Awesome information. Thank you. It's 4.5% with 20% down and 0 points. I can buy it down to a 4.125 with 1 point but not sure if that extra $20 a month is worth the upfront :)
You're welcome. Whether or not to pay points is a personal decision usually based on how long you intend to keep the property, what your "break even" point will be, amount of available cash at closing, etc.
Based on your rough numbers, I estimate that it would take you approximately 45 months to "break even" if you were to pay the one point. So, give that, if you're planning on holding the property for 30 years it might be worth it to you. If you're only planning on holding it for 4-5 years, maybe not.
Hope this helps.