As a buyer waiting to purchase the best deal for your money’s worth, you may find yourself looking at quotes from different lenders and ads. But how can you decide if buying down on a mortgage would be the better option?
Buying Down the Mortgage Rate
Before deciding to take a huge sum of money out of your financial budget for one-time fees, make a thorough research and comparison. Is it the lowest possible interest rate? How would it differ on the total cost and what length of time is it good for?
Understand the breakdown of the fees and charges versus the terms of the mortgage. Normally, it would include fees for the processing of the application, processing of the loan, underwriting and the rest of the administration charges. However, the most important factor would be the interest rates being offered by the lender wherein you will get a considerable amount of savings if you’ll pay more during closing.
So, before you consider buying down on rates, talk to a reputable mortgage broker. You may also check out our Buyer’s Guide for more helpful tips.
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