Questions on my VA loan
I was offered to buy points to lower interest rates on my VA loan. I have a loan currently but getting divorced soon so I need to get out of this loan and give it back so he can use it. I have a great rate but can't afford today's rates. How many points can I buy? Do most loans have this? Can you buy points on a refinance? by gabzepeda347 from Phoenix, Arizona. Jan 9th 2023
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
yes - you can buy the rate down via paying a larger loan fee ( points ) on all loans ....you will likely be able to roll the costs into the new loan ....you should do a " breakeven analysis ... compare the rate and fee options you are getting and determine how long it will take to recover the extra loan fees ( points) via the monthly savings you would acheive ......eg ......if the extra fee to buy the rate down is 5K and you are going to save $80 per month ..the breakeven point is 5000/ 80 = 63 months ..over 5 yrs ....if you think you will have moved and sold the home before this point - then buying rate down doesnt make sense
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