About This Video
A lender might show you an attractive rate on paper, but it could cost you thousands of dollars in upfront fees. Before you choose a loan, you need to understand discount points and your break-even timeline.
💡 Here’s how the math actually works:
- Imagine paying $4,000 upfront in discount points to lower your monthly mortgage payment by $65/month.
- Divide $4,000 by $65 = 61.5 months (about 5 years) to break even.
🚨 Why this matters:
If you sell your home or refinance within 2 to 3 years, you’ll move before ever recovering that $4,000 upfront cost!
📌 What to ask your lender:
When a lender quotes an attractive rate, always ask: "How much am I paying upfront get that rate?"
❌ Never just compare the rate alone.
✅ Look at the points, monthly payment, and break-even timeline together.
📲 Want to see the real numbers behind your mortgage? Contact Lock It Mortgage team today for a transparent review without hidden surprises!
Disclaimer: This is not a commitment to lend. All loans are subject to borrower qualification, property eligibility, and underwriting approval. Rates and terms are subject to change without notice. Additional terms & conditions apply.
