Using Equity to Buy Another House.
Pros and Cons of Buying Down Interest Rate to Reduce Mortgage Payments
Many people buy down interest rate to reduce their mortgage payments. Here are the pros and cons of using this strategy.
You may have heard about people buydown interest to reduce mortgage payments.. In this arrangement, borrowers obtain a lower interest rate, either for a set period or the full loan term. To carry this out, borrowers pay extra fees known as “mortgage points” upfront. After paying these points, the borrower receives a lower interest rate than standar...
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