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2kids2cats
My babies
Member since 6/05 5229 total posts
Name:
f
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What is the wiser choice?
Interest rate for a 30 year fixed at 6.5% with a 1% origination fee (loan amount is $340,000) OR no origination fee and 30 year fixed at 6.75%? Both no points? TIA
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Posted 7/18/06 10:45 AM  |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: What is the wiser choice?
do you plan on making any extra principal payments?
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| Posted 7/18/06 10:49 AM |
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2kids2cats
My babies
Member since 6/05 5229 total posts
Name:
f
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Re: What is the wiser choice?
I can't say for sure...
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| Posted 7/18/06 10:50 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: What is the wiser choice?
Points Caluclator
try this calculator
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| Posted 7/18/06 10:54 AM |
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2kids2cats
My babies
Member since 6/05 5229 total posts
Name:
f
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Re: What is the wiser choice?
Well it's with no points, so the total upfront cost would be $3,400. That would be the broker's fee for that interest rate. I guess it will save approx. $15,000 in the long run. Oh what to do? The rates are probably going to go up today.
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| Posted 7/18/06 10:57 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What is the wiser choice?
of course I have no idea how to do this
but you need to figure out how much more you will pay over the 30 years with the .25%
vs the extra 1% up front
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| Posted 7/18/06 10:57 AM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: What is the wiser choice?
All things being equal, my preference would to take the lower rate and pay the origination fee. You should look at an amortization schedule and see what it would save you. Believe me that 1% origination fee you pay up front is worth it in the long run.
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| Posted 7/18/06 11:00 AM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: What is the wiser choice?
Click Me
Here is an idea of what your payments would be and what you would wind up repaying to the bank in interest and principal. You can see the difference with the 6.5 and 6.75. It's a lot more than 3,400.
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| Posted 7/18/06 11:03 AM |
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2kids2cats
My babies
Member since 6/05 5229 total posts
Name:
f
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Re: What is the wiser choice?
Okay, DH just called him and he said his fee, as written on his good faith estimate is only $500 flat, not 1% of total loan amount and that there is no catch, that he is a discount lender and that he hopes to get more business by word of mouth. If he can lock us in today we are going to go for it...I think!
ETA: Thank you so much for your opinions and help!
Message edited 7/18/2006 11:05:11 AM.
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| Posted 7/18/06 11:04 AM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: What is the wiser choice?
Posted by Hi-Fi55
Click Me
Here is an idea of what your payments would be and what you would wind up repaying to the bank in interest and principal. You can see the difference with the 6.5 and 6.75. It's a lot more than 3,400.
if you're planning to stay in this house for a long time (5 yrs plus)... pay the orig fee!
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| Posted 7/18/06 11:04 AM |
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