[markbila]

i demand a hockey analogy to solve this!

[saruxanset]

Of course, I am aware that asking this on 'poly may not be the best of ideas...

-Arrian

[eliniaguilefp7m]

Originally posted by Arrian
Of course, I am aware that asking this on 'poly may not be the best of ideas...

-Arrian You know algebra, you can figure it out.

[Thunderzee]

Originally posted by Arrian


Mortgage point = 1% of your loan amount. This gets you a break on the interest rate.

I could renegotiate the mortgage in 5 years... if that makes sense (rates drop). That's by no means a given.

-Arrian Are US mortgages fixed rate for the entire length of the mortgage then? Banks don't have the rate revert to an overinflated variable rate after a certain time such that you should renegotiate before that term is up?

[Tw1anJOO]

Originally posted by Flubber
Assuming that your personal circustances don't dictate otherwise, isn't this just a math question? Yes, but forgive me if my head hurts a bit. Not because I can't do basic math, but because this is but one of the many things I'm trying to deal with right now.

I get the basics of it, but the question, I suppose, is whether it actually might make more sense to not pay any points and try to do better via investment. There are also tax implications, which are dependent on our specific tax picture, which none of you know...

Bah. Maybe I'll just pay 1 point, which is kinda like a "hedge my bets" option.

-Arrian

[Enfonebew]

Arrian,

What kind of mortgage are you doing?

[NofFoomiTot]

rate probably won't drop too much in the future

with that said I wouldn't take the points, instead I'd try to get into a 15 year fix, if not leave the points and put the money down on the principle with the idea of refi'ing to a 15 in 5 years.

IMO, points are a rip off