"Why pay points when financing my home?"
This is one of the most frequently asked questions when considering locking an interest rate.
Here are a few good reasons:
- Points paid on a purchase transaction are a tax deduction in the year of the close of escrow.
- Paying points can dramatically reduce the interest rate on the loan.
- Lowering the rate lowers the payment, lowering the income needed to qualify.
- A lower rate saves the buyer thousands of dollars over the life of the loan.
- There’s never been a better time to buy down a rate.
- Historically .50 point lowered the rate by .125%
- Now .50 point lowers the rate by nearly .20%
Please keep in mind that I’m always available to serve you and others with financing needs.
For more helpful resources visit BayAreaHomeBuyersInfo.com!
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