|
|
Enter Your Current and Proposed Loan Factors |
|
|
|
|
|
|
|
Enter the Approximate Closing Cost Factor |
|
|
|
|
|
|
|
|
The benefit of comparing different options, especially paying points vs. not or comparing different loan terms
becomes much more clear when done on the same page. This is most beneficial in this format where a particular
number of years is selected to represent how long you expect to have your new loan. What at first may have been a
quest for the lowest interest rate can now be more intelligently focused on finding the lowest cost over the life of
the loan you plan to use. This can go a long way to refute the "conventional wisdom" that the lowest rate is always
the best choice. As in fact, the best choice is the one that costs the least and if you won't be in your home or loan long
enough to recoup the cost of paying for the lowest rate, it may prove to be just a low rate on a high priced loan.
The alternative of minimizing closing costs while still saving on your monthly payment can often make more sense.
|