In the scenario above, the buyer wisely decided to buy down his interest rate at $2,000 per point. In this case, each point equated to 0.72%. He bought down 3 points for a total of lowering his interest rate down to 3.125% at a cost of $6,000. Over a 30-year conventional loan, the amount that he is saving in interest is an astounding $100,378! The third row shows how much he would have paid if he had simply applied the $6,000 to the down payment as opposed to buying down his interest rate. As you can see, doing so would have saved $12,264 in interest. However, there is no comparison between a savings of $100,378 and $12,264!
I highly encourage each of you to look into getting approved as soon as possible so that you can lock in these low rates while they’re still scary hot! Santa will thank you in the form of a lower monthly payment each year for the next 30 years! That’s a ‘Nice List’ guarantee for life! =)
Special thanks to Stephen Ozuna, Mortgage Loan Officer at JW Capital, for helping to put this together. For additional lending questions that may require his expertise – or to get preapproved – give Stephen a call! Thanks Stephen!
Again, I am always here to assist you in the home-buying or home-selling process! Give me a call or shoot me a text at 407-928-0307 anytime! To stay up to date with what’s going on in Orlando, tune in to: https://parkbench.com/orlando-central-business-district
. Happy Holidays everyone!