Re: Lending rate question
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The 6% first is zero points, so about $2,300 to close including appraisal, lawyer, taxes, county and state fees, and mortgage borker vig, which is about $1,000. I can also get 5 and 5/8 for one point. I plan to pay that mortgage off in 5-7 years and then convert to a mega-HELOC for investment purposes. So when you say I can get the loan cheaper, how much cheaper?
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If this is the deal you have set up, it's better than what 90% of borrowers accept.
Your broker is making what I would consider an honest yeild spread on the back end in addition to the $1,000. The buy down is not a bad deal if you were going to keep the loan for a few years. If you are into outside investments don't pay off the low rate first. It's hard to find cleaper money anywhere else.
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yeah, the broker is probably making around .50% yield spread from the lender. That's pretty fair.
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