Posted on: 26th Jul, 2012 02:56 am
I'm planning to buy a house now but I also have plans to sell it off within 4/5 years. Would I be better off if I get a loan with negative points, i.e., I get credit from the bank while closing? If I get credit, then I'll have to pay extra interest, but I believe that interest is spread over the duration of the load. So, if I take a 30 yr loan but sell it off in 5 years, won't I actually profit by choosing a loan with negative points? Do I understand this correctly?
Hi Willy,
First and foremost, given the present market situation, selling off the property won't be a easy task. Moreover, at the time of selling, if the lender cannot recover the mortgage amount in full, you will be liable for paying off the deficient balance from your pocket. You need to keep all these in mind before signing on the deal.
Take care
First and foremost, given the present market situation, selling off the property won't be a easy task. Moreover, at the time of selling, if the lender cannot recover the mortgage amount in full, you will be liable for paying off the deficient balance from your pocket. You need to keep all these in mind before signing on the deal.
Take care
Hi Willy,
If you take negative points from the lender, then there are chances that you will have to pay a higher interest rate. Check out whether or not you will be able to afford it for 4/5 years.
Thanks
If you take negative points from the lender, then there are chances that you will have to pay a higher interest rate. Check out whether or not you will be able to afford it for 4/5 years.
Thanks
Rates are still at all time low even with a lender credit. Click on my profile and contact us to discuss your options.