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Should You Pay Points for a Lower Mortgage Rate in Knoxville
MORTGAGE POINTS AND FEES EXPLAINED FOR HOMEOWNERS IN KNOXVILLE AND EAST TENNESSEE
Paying fees up front to lower your interest rate and monthly payment might sound like a bright idea, and even look good on paper… But are they really worth it
For some Knoxville home buyers , it could be, but for others, not so much. This is why it can be a rather confusing topic for many looking for a good deal on their home loan.
If you really want to know if paying fees is a good deal for your particular situation, you need to calculate what your overall savings will be for the life of the loan considering on how long you intend live in your home. If you’re only going to live in your home for a short time, for example, then you might not have enough time to recoup the cost of cost savings when compared to how much you paid up front for the reduced mortgage loan interest rate. On the other hand, if you plan on being in your home for years to come, then the upfront fees may be worth it if you end up saving more than you paid in the ... more
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