For the most accurate up to date mortgage rates please email [email protected] or text/call 479-841-6610.
When reaching out to a lender and asking for rates you want to make sure that you are comparing apples to apples with different lenders. Every lender has similar pricing but they don’t all present their rates in the same fashion. Most of our loans are presented in “Lender Paid” form. Lender paid loans have the mortgage company and or bank fees in the rate. We set up loans in this way to lower the amount of closing costs for our borrowers.
What are “points” in a mortgage loan. A point is a percentage of the loan amount that goes to your bank or mortgage brokerage firm. One point is 1 percent and two points is two percent and so on. When shopping for mortgage rates you do want to find out if the lender is using points in their equation. NwaLending.com typically does not use points when quoting mortgage rates, but when the borrower wants to buy down the rate we will plug in points to see how much lower we can get the rate at different price points.
Should I buy down the rate? It depends and we can help you with that. Lower rates mean lower payment, but with an upfront cost. We can help you calculate how long it would take to pay back the rate buy down to see if it is worth the cost of the points you are paying for. If it takes 8 years or more to pay back the rate buy down it might not make sense since the length of time you need to break even is beyond the time you may even be in your home. The average person lives in their home about 6 years before making life changes. There are all kinds of factors that contribute to making changes in your home. Job offers & number of members in the household increasing or decreasing could contribute to a family making a change.
We can help with the calculation, so you can see if buying points is right for you.