31 thoughts on “Discount Points (for a Mortgage)

  1. Who do you talk to about the mafia using your phone to orchestrate position with the United States government with devt owed which never can be repaid

  2. I think it's a lot more complicated than just dividing the point diff with the payment diff. You have to consider that due to the interest difference. The principle and interest paid after certain amount of time would be different. It could easily be thousands of dollars apart in either section. And also, mortgage interest is tax deductible. So if it is your primary residence, income level is another factor in this game.

  3. would the points you are paying upfront come out of your equity if you are refinancing? Or you have to come out of pocket? and what is the maximum points you could pay to drop your interest rate?

  4. thank you so much for this video ,I've seen many videos and I always ended up more confused but you save me ! Thank you again .

  5. You need to account for the time value of money. For example, is the 30 year annuity of $53 per month worth the upfront cost of $3200 given the discount rate?

    Using 3% (for inflation but throw in whatever number you want to do the math with) and keeping the loan for the full term, the net present value would be about $9371.04. Feel free to double check my math though.

  6. Your videos are a great help for me right now. Trying this exam the second time around. Do you have a video for ARMs loan?

  7. Everytime I think I've found the best way to broke down the math aspect of this formula…it just got better than the one before! :))

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