"John A. Weeks III" wrote in message
...
In article ,
(D. Gerasimatos) wrote:

In article , Una wrote:

If you are going to prepay, then prepay the principal, not
the interest. Which means: do not buy points! Get a smaller
mortgage or make prepayments as you go along. An advantage
to prepayments is that if your cash flow gets tight, you can
suspend making them.


I disagree with this advice. Buying down the rate can save thousands
over the life of the loan.

But in general, the cost of the points is not worth the
savings in interest.

Like most things, it depends. I had my loan officer crunch the numbers both
ways, and the payback period was only a couple of years. I plan on keeping
the house 7-8 years minimum, so it was a no-brainer. And unless something
major happens, I don't see refinancing as likely, since I got my paper at
very close to the low point. I don't think I'll see 5.4 again anytime soon.
Once I get past these initial PM repairs, I plan to start throwing extra
against principal.

aem sends....