Author Topic: Mortgage question: 20%+ downpayment vs. points  (Read 1506 times)

mrteacher

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Mortgage question: 20%+ downpayment vs. points
« on: February 08, 2018, 01:10:19 PM »
Hi folks,

My wife and I are researching the home-buying process and beginning to look at houses.

We have enough for a 20% downpayment and are happy to avoid paying PMI. I recently learned about points, and from what I can tell we would be a percentage of the borrowed amount up front in order to lower our interest rate. Is that correct?

We've gone back and forth on whether or not we want to put down more than 20%, probably in the 25-30% range, but now that we've discovered points, would that, potentially, be a better option?

TL;DR: if we are going to put money beyond 20% into our home purchase is that money better utilized through increasing our downpayment, or paying additional points?

Also: I know and understand the logic behind not putting more than 20% down, but we have thought it through and having a lower PITI payment will give us the option to, perhaps, have a SAHP down the line.


 

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