Mortgage Discount Points Sedona AZ

There are many expenses one must pay when closing on a mortgage. This article talks about how discount points can help ease the burden.

First Magnus Financial Corp
(928) 203-9899
1225 W Highway 89A Ste 201B
Sedona, AZ
 
Primary Residential Mortgage Inc
(928) 203-0695
3190 W State Route 89A Ste 900
Sedona, AZ
 
Chase Bank
(928) 282-4127
1300 W Hwy 89a
Sedona, AZ
Type
Freestanding
Office Hours
Mon:9:00-5:00
Tues:9:00-5:00
Wed:9:00-5:00
Thurs:9:00-5:00
Fri:9:00-6:00
Sat:9:00-1:00
Sun:closed

Tmbg Inc
(928) 203-4373
251 Hwy 179 Ste C4
Sedona, AZ
 
National Bank Arizona
(602) 212-8861
1470 W Highway 89A
Sedona, AZ
 
Concord Mortgage Company
(520) 203-9494
2530 W. Highway 89A
Sedona, AZ
 
Pinnacle Capital Mortgage Corporation
(928) 282-3200
1865 W Hwy 89A Ste D
Sedona, AZ
 
Bank of America - West Sedona
(928) 282-4444
1771 W Hwy 89a
Sedona, AZ
Type
Banking Center
Services
Banking Center Services: Commercial Deposits, Night Deposits, Drive Up
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday 9-5
Tuesday 9-5
Wednesday 9-5
Thursday 9-5
Friday 9-6
Saturday 9-1
Sunday Closed
Drive Up Hours
Monday 9-5
Tuesday 9-5
Wednesday 9-5
Thursday 9-5
Friday 9-6
Saturday 9-1
Sunday Closed

National Bank of Arizona
(928) 204-1060
1470 West Highway 89A
SEDONA, AZ
Services
Mortgage Brokers

American Mortgage Specialists Inc
(928) 282-4474
1725 West Highway 89A
SEDONA, AZ
Services
Mortgage Brokers

Mortgage Discount Points

Discount points are a fee paid to the lender in order to reduce the interest rate on the mortgage. A "point" is one percent of the loan amount; in exchange for paying one or more points, the interest rate on the mortgage may be reduced by an agreed upon amount. Since this fee can easily run in the thousands of dollars, it would make sense to first determine if it is a good idea to pay the lender to reduce the interest rate.

The key to this equation consists of two parts – how much the monthly payment will be reduced if you pay the points and how long you will keep the mortgage. Most people have some notion of how long they intend to remain in the house they are buying, but it is more difficult to determine how loan you will keep the loan. After all, if interest rates drop dramatically, you may elect to refinance the mortgage, which would retire the existing one.

When closing approaches, and you are considering "locking in" your interest rate, ask your lender if you can reduce the rate by paying points. After he or she outlines the available options, ask them how much the monthly payment would be reduced if you paid the points. After that, divide the cost in points by the monthly savings. The answer will be the number of months that you will have t keep the loan to break even. If you think you will keep the mortgage for that long or longer, then you should probably pay to reduce the interest rate if you can afford to do so.

Even a savings of $20-30 per month can add up over the life of a 30 year mortgage, so it is well worth your while to see if you can lower the payments. Why pay more than you have to?

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©Copyright 2005-06 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.homeequityhelp.net, a site devoted to information regarding home equity lending.

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