Can you Buy down points in a refinance situation?
jawsnu7 asked:
I currently have a Adjustable Rate Mortgage(ARM). I anticipate getting a large refund back for tax refunds. Can you buy down points if you are trying to get a fixed rate loan. I have gotten behind on some bills and I would like to know if It is best to pay off the bills and wait to refinance or try to buy down
points for a better fixed rate loan?
I currently have a Adjustable Rate Mortgage(ARM). I anticipate getting a large refund back for tax refunds. Can you buy down points if you are trying to get a fixed rate loan. I have gotten behind on some bills and I would like to know if It is best to pay off the bills and wait to refinance or try to buy down
points for a better fixed rate loan?
All good advice appreciated.
Eddie.
Shane
Tags: Fixed Rate Loan, Good Advice, Refinance
July 20th, 2009 at 9:59 am
Alexander
Of course you can
July 21st, 2009 at 4:37 am
Jeffery
Yes, you can buy points on a refi. But be aware, you can’t deduct the points outright on your tax return when the points were paid on a refi. You will have to amortize the points over the length of the loan.
July 24th, 2009 at 5:26 am
Manuel
yes, you can pay discount points up front to buy down your interest rate. In many cases, every 1% of the loan amount that you pay up front will “buy down” your rate between .25% and .375%. This definitely makes sense to do if you are planning on staying in the home (or just keeping the same mortgage) for a long period of time.
July 24th, 2009 at 8:40 pm
Charlie
You can definitely buy your rate down with a refinance. It is typically rolled into the mortgage so you don’t have to bring anything to closing, but you can pay for it out of pocket if you want.
If you’ve gotten behind on some bills like you say, your credit may be an issue. Talk with a direct lender now to make sure you qualify. They will be able to go over the available options - points vs. no points, consolidating some of your bills, etc. It is their job to make sure you are educated about your options.
Best of luck!
July 28th, 2009 at 4:00 am
Lester
Yes you can
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON’T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.
Remember Buddha’s advice:
“Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense.” You are the only “expert” you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is “selling” you something (its not advice, its advertising). Don’t buy “it.”
July 28th, 2009 at 9:59 am
Amanda
Hi
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Thanks.
Deborah Kirk