Updated almost 8 years ago on . Most recent reply
i would rather buy points instead of a larger down payment
Car payments, phone payments, daycare payments, energy payments....all come once a month. i am personally conditioned to live on a monthly budget. it comforts me. i never understood why somebody would increase their payments by hundreds just to be mortgage free 15-20 years later. i want to live in the now. i feel like if i can get a cheap monthly payment, i will be able to increase my disposable income that would allow me more options. Vacations, dinners, nice clothes, gifts for the wife, sports for the kids, nights out with the boys etc....
and for this reason, i would rather buy mortgage points as a way to reduce my payment rather than make a larger down payment for my home.
the context i am speaking of is my primary residence, where i plan to raise my family. its not my starter home. my wife and i are placing an already large down payment (25%). we could come up with a larger down payment but i would rather spend 6k up front at closing to get the lowest possible rate.
thoughts?