Buying A Home
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
paying for points?
I see this expression and am not clear as to what it means. I've read a little on the interwebs and am even more confused. Can anyone dumb it down for me? Thank you!
Re: paying for points?
When you pay points, you are paying a lump sum up front to get a lower interest rate. If you're planning to stay in a house long term, it can save you money over time. One point is typically 1% of the loan, and lenders will discount your interest rate by somewhere around 1/8th of a percent for each point you pay. That's not a hard rule, so ask your lender.
This pretty much sums it up.
There's also a good equation you can use to determine if paying for points will work for you or not. Since paying for points lowers your interest rate, it lowers your monthly payment. So you can take the cost of the points and divide it by the difference in monthly M & I payments to give you the number of months needed to break even.
So lets say you pay $1500 to lower your interest rate and that saves you $15/month. It would take 100 months (or 8 years, 4 months) to break even. If you plan to stay in the house longer than that, it makes sense to pay for points. If you don't expect to be in the house that long, it doesn't make sense as your monthly savings hasn't paid you back the initial upfront payment.
we paid $4,000 for 2 points because this is the breakdown of what our interest rate would have been:
0 points = 4.25%
1 point = 4%
2 points = 3.5%, which is what we're paying now as we plan to be here for a long time