Thread: interest rates
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      09-10-2008, 06:23 PM   #17
Dmitriy@AUTOcouture
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Quote:
Originally Posted by daixloxbmw View Post
sorry for not providing more specific details.

credit score: ~780-790 average from the 3 companies.
purchase price: $373k
loan amount: $333k
down payment amount: $40k

so far the best i was able to find was 5.875%.

i could bring it down to $5.75% if i pay 0.5% ($1665), is that worth it?

that would reduce the monthly payments by ~$25.
My rate, as of today is 5.625% with 0 points on a Single Family Home in Mass, on a 60 day lock.

I would not pay points if I was you, take a look at it from a mathematical perspective:

5.625% @ 0 points = $1,916/month (Principle & Interest)
5.50% @ .50 points = $1,890/month (Principle & Interest)

Monthly Savings = $26
Points = $1,665
Time to recoup the costs = 64 Months/ 5 Years 4 months.

Absolutely not worth it. Put that money in a interest bearing account and make it work for you. Discipline is key.
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