Blog post
Savings on Mortgages
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With rates in the 6-7% range for 30-year fixed-rate mortgages, buying down the rate by paying points (an upfront fee that is a percentage of the total mortgage) is worth considering. The savings can be substantial if the mortgage is unlikely to be repaid or refinanced anytime soon. Calculating the break-even point is important—the number of months it takes for cumulative monthly savings to exceed the buydown cost.
By Larry Derany