This is fresh. Just a few minutes ago, I got off the phone with a customer representative from a mortgage company. With all the news about the home interest rates plumetting, I wanted to see if I could reduce my interest points and cut down my monthly payment.
I am currently at 5.375%. After verifying my information, I was given a new rate of 4.625%, with 2 points. The closing cost would have been $10,800. I would have saved around $212 per month on my mortgage. To recover the closing cost (break even analysis), I would have to stay in my current house for a little over 4 years.
Actually, that’s not too bad. But $10,800 is a lot of money — money that I might need because I plan on getting married within the next 4 years. And we all know how much those cost!
But… I do plan on staying here for at least 4 years, so it’s not a bad proposition. I’ll have to think more about this.