Real Estate and Home Mortgages - Downside for Points?

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dave houlihan
03-12-08, 03:39 PM
I am looking at a refinace. I am almost 6 years into a 30 year at 6.8%. I can get a refi @ 6% for 20 years but with 3 points can get 5.25% also at 20 yrs. With rolling closing costs and points into the refi, the 5.25% plus 3 points is the lower monthly payment.

Is there any downside to this or is it a no brainer?

djcheez
04-27-08, 07:28 PM
bottom line is where your break even point is with points, and if you probably will be in the home at that point or longer. As far as lowering your monthly payment and shortening the term, yes this typically is a no brainer