Posted by Nick on July 24, 2001 at 14:47:41:
75K 2.5pts $1,875
75K 3.75pts $2,812.50
75K 15yrs @ 6.65% $659.53 * 180 pmts=$118,715.57
75K 15yrs @ 6.00% $632.89 * 180 pmts=$113,920.67
75K 15yrs @ 5.875% $627.84 * 180 pmts=$113,011.00
Looks like when you add in the points that the 6% with 2.5pts is the best deal.
Nick
20% Down Rule - Posted by Sharon Purser
Posted by Sharon Purser on July 24, 2001 at 11:30:11:
I’m in the process of buying a 2nd home, but have told my lender that it’s a principal residence for me - they are cool they don’t care - but they want me to put 20% down to get a rate of 15 year fixed conventional rate of 5.875 with 3.75 points. Seems kinda high to me (the points that is). I want the low rate, but will need to have to get a gift letter of equity)from my dad to cover the 20% down becuase I didn’t plan on giving him that much $ for the house (it’s a inter-family transfer). Would you pay these points for this rate? all the other going rates in delaware are 6.65 with 0 points down to 6.0 with 2.5 points. Should I take the lower rate and get the gift letter and be done with it?
Need advice ASAP!!!
Re: 20% Down Rule - Posted by sharon
Posted by sharon on July 24, 2001 at 12:48:14:
the loan amount is 75k contract price was 85k (but probably needs to be 93,750 to satisfy the 20% down rule.
Re: 20% Down Rule - Posted by Nick
Posted by Nick on July 24, 2001 at 12:42:16:
The only way to know which is better is to calculate how much will be saved compared to the cost to the points. Since you don’t have the purchase or loan amounts I can’t calculate this.
So just see which costs you less over the life of the loan.
Nick