Quote:
Originally Posted by MP0WER
Low interest rate, high fees. Low fees, higher interest rates.
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This. It's called "points". The more points you pay upfront, the lower your rate. Sometimes they're sneaky and say you're paying zero points, but work the extra money into some other administrative fee.
It can work the other way, too. A few years ago I refinanced a $300k house that I owed $228 on. I got 5.125%, and my closing costs were....ZERO. Negative points- I got a worse rate than I otherwise would've but I was saving money 2 months later (the time it took to pay for some odds and ends like the appraisal)