Words of wisdom by the guru @iambarryhabib

🏡 Mortgage Decisions: Pay Points or Not? . Here's the simple guide to figure out if paying points on your mortgage is a good idea or not. Paying points can reduce your interest rate and monthly payment, but you have to run this formula to make sure it’s worth spending that amount of money at closing. Here’s how to do it: Ask your lender for a side-by-side of monthly payments: one with points, one with no points. Take the total cost of the points—let's say $4,000—and divide it by the monthly savings—maybe that’s $100. The outcome? $4,000 divided by $100 gives you 40 months. This means 40 months is the break-even point. If you plan on keeping your mortgage longer than this, paying the points is a great way to save money #spirotheloanguy #mortgage #realestate #marincounty #c2financial