Should we buy points?

Locked in at 5.5% in early July. We close in less than 2 weeks. We are putting over 45% down payment. Looking at other lenders websites recently and it seems that rate should have been lower considering we are putting so much down. Current lender is offering us a rate of 5.125 if we buy 1 point, and 4.875 if we buy 2 points. Buying one point would save $70 off the monthly payment, and buying 2 points would save an additional $45 off the monthly payment. Should we buy zero, 1, or 2 points? We plan to stay in house at least 15 years.

Also, are refi closing costs similar to the closing costs for the initial purchase? We are paying $24,000 in closing costs, which includes $7,000 in required prepaid taxes for rest of this year and year ahead. That part would already be paid for refi purposes, but would we still have around $15,000 in other closing costs?

Torn between buying no points, and hoping rates go down and that refi costs are lower and we can just refi in a couple years. Or buying 2 points under assumption rates aren’t going to go lower than 5 again. Or buying 1 point to split the risk. Thoughts?

submitted by /u/ilovemyfurbaby
[link] [comments]

Locked in at 5.5% in early July. We close in less than 2 weeks. We are putting over 45% down payment. Looking at other lenders websites recently and it seems that rate should have been lower considering we are putting so much down. Current lender is offering us a rate of 5.125 if we buy 1 point, and 4.875 if we buy 2 points. Buying one point would save $70 off the monthly payment, and buying 2 points would save an additional $45 off the monthly payment. Should we buy zero, 1, or 2 points? We plan to stay in house at least 15 years. Also, are refi closing costs similar to the closing costs for the initial purchase? We are paying $24,000 in closing costs, which includes $7,000 in required prepaid taxes for rest of this year and year ahead. That part would already be paid for refi purposes, but would we still have around $15,000 in other closing costs? Torn between buying no points, and hoping rates go down and that refi costs are lower and we can just refi in a couple years. Or buying 2 points under assumption rates aren’t going to go lower than 5 again. Or buying 1 point to split the risk. Thoughts? submitted by /u/ilovemyfurbaby [link] [comments]

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