Why do I have to pay points to buy the rate down
I had a call with a client call I had today with someone who’s trying to buy a home with 10% down. We all know that mortgage rates a little bit higher than they have been in the past. If you saw my last video, you also know rates are probably coming down sometime next year. Well, right now, lenders are not offering decent interest rates with zero points or zero fees for the interest rate.
They want to charge more money now. Why? Well, they know that if you’re buying a home or refinancing near with a higher rate, the chances are you’re going to refinance that home sooner, maybe sometime next year. The longer you have your loan with the lender, the more money they make, the shorter you have the loan, the less money they make.
So a lot of them are starting to charge some fees now just to get in the door. There are any questions about how this may impact you buying a home or a client. Please reach out anytime. Thanks. Have a great day.
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