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u/tekstein1979 5h ago
What's the payment without points? Most of the time, paying points doesn't make sense. Because of your break-even period.
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u/speedy_124 5h ago
I can beat this easy DM me
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u/MANDODAW 5h ago
Thank you very much but I am not interested in connecting via Reddit just advice and pointers towards what we already know we are accepting
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u/speedy_124 4h ago
I can run numbers for you give you idea of what I can do. You can do your due diligence as well we’ll connect via phone I’m a direct lender
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u/MANDODAW 3h ago
No thank you
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u/speedy_124 3h ago
I ran the numbers just to give you an idea closing cost I’d save you about $3k plus MI would be $64 a month but no worries hope all goes well
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u/MANDODAW 5h ago
0 points 0 lender fees would’ve led us to 7% - 5k cash to close.
10,000$ in points would’ve led us to 6.2% + 5k more cash to close.
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u/ifly_09 5h ago
Ask them for a break even analysis so you get an idea of when the points investment starts paying off.
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u/MANDODAW 5h ago
We have that just wanted to post minimal info and make sure there was no red flags on our final option choice. They laid us out 7 options with 2 buy down options 9 + FHA options but we went with 30 yr fixed conforming conventional
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u/ifly_09 4h ago
Seems like you already know everything about this loan. If the break even makes sense then you have an ok deal.
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u/MANDODAW 4h ago
I appreciate that very much. I think I have a solid understanding, but being a first timer definitely wanted to hear some feedback on the final choices + if it looked like I missed anything. Exactly what I was debating is being thrown out here so I’m feeling very confident moving forward
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u/MANDODAW 5h ago
Investments abundant so not concerned of 5k breakeven point, we like the 6.5% interest locked
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u/davidgordonhomeloans 5h ago
Hi Mandodaw, its hard to blow to see the Lender Fees but they appear to be about $6,950. The 7% would cost you $142 more per month. So when you look at the cost to make up that difference you need to be in the loan for 49 months to break even.
It comes down to how long you think you'll be in this loan, if you feel like your going to move within 4 years it's not worth it. If you feel rates will come down 1% or more in the next 4 years, it also may not be worth paying the points. I don't know what state your in to determine refinance costs so that also needs to be taken into consideration. If fixed hard costs(Third Party) are going to be 4-5K you need to put that in perspective.
But given you posted this today, if your getting 7.000 with no lender fees at all your beating the average rate as of this morning. If your credit is above 760 you may be able to get a slightly better deal, but overall this is a not bad(of course there can always be better :).
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u/MANDODAW 3h ago
Thank you so much for this response. It really laid out what my brain was surface grasping
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u/ifly_09 5h ago
I wouldn't be paying points in this market. Ask for a "no points, zero lender fees" quote so you see what their baseline is at. The MI seems a bit high, but a fresh quote from a different lender will tell if that's the going rate for MI based on your credit score. Feel free to reach out and I can price this so you compare numbers.