Is it a good idea to buy down rates?

thanks - if you have 20% down your best bet will likely to be using a conventional loan....FHA loans have a high fee called the upfront mortgage insurance fee and this 1.75% fee is worse avoiding if you can ....FHA loans are decent options for borrowers with minimum down payments / poor credit.....if you plan to stay in the property long term - consider using a conventional 30 yr fixed ...you might also try working on the credit scores as a mid scoreof 740 or higher will be better priced than a loan with a 720 score - good luck ...Dave Skow | Loan Officer Movement Mortgage NMLS 278613 Dave.skow@movement.com Mobile (206) 714-9745

if you can put 20% down, you do NOT ant an FHA loan. The FHA loan has mortgage insurance no matter what size down payment, even at 20% or more. A ballpark 30-yr fixed loan at today's rates, $450k, 20% down is going to be around $2200 + property tax, PLUS home owners insurance. Buying down the rate means you pay more money today upfront AT closing, in exchange for a lower interest rate. You have to calculate the cost benefit first. What is the cost today, how much does that lower the payment, and where is your breakeven period? Let's for example say the break even is 5-years. So it takes you 5-years just to 'save' back the money you paid today. If you were in the loan less than 5-years, that was not worth it. But if you are in the loan 10-years, 15-years, or more, it is a good deal. The ODDS of mortgage rates falling in the next two-years to a level that you would refinance makes it hard to justify most people paying points today. I lend in FL, MN, IA, ND, and SD. Find me at SaintPaulMortgageBroker.com Cambria Mortgage, NMLS 274132