which is a better mortgage loan?
kk asked:
I am not sure what is a better home loan option:
5.75% no pts, pay closing or
6.125% no points and no closing cost?
Michael
I am not sure what is a better home loan option:
5.75% no pts, pay closing or
6.125% no points and no closing cost?
Michael
July 27th, 2009 at 5:52 am
Glenda
With the Fed action today every rate you have been quoted will or has fallen DRAMATICALLY.
You should get re-quotes fast — and lock it in.
against those though… take the higher rate and no CC. You’ll be able to re-fi later at a lower rate.
July 30th, 2009 at 2:21 am
Cindy
Mortgage loan is a term used for the loans secured by a property. Mortgage loans refer to a loan secured by residential property, often for the purpose of securing real estate. Mortgage loans are priced lower than other loan structures because the value of the property risk for the lender.
A fixed rate mortgage loan has its own benefit. If the borrower is budget conscious, he will remain at peace because the monthly mortgage amount will not change.Fixed rate mortgage loan is a loan where the interest rate remains the same through the term of the loan. Fixed rate mortgage loans are the most traditional form of loan.
August 1st, 2009 at 8:57 am
Bernice
The answer depends on you. What you need to do is figure out the difference in payments between the two options. Divide the the amount of closing costs by this difference. This will give you the number of months when both loans break even. The higher interest rate will be better at the beginning of the loan up to the break even point since you would not have paid any upfront fees, even though the payment is higher. From the break even point and into the future, the lower rate is obviously the better option as you will have recouped the costs of the closing costs and every month you are paying less payments.