While picking out a mortgage, you might be faced with the option of using positive or negative mortgage points, which can alter your interest rate and your closing costs. But what are they? The DiMora Team are real estate experts in the Novi and Northville neighborhood and we know that if you want to lower your interest rate you can try paying an upfront fee at closing. This is known as buying positive points, where each point is equal to 1% of the mortgage. With a typical mortgage lasting 15-30 years, positive points can save you a good amount of money over the loan period. You will also want to calculate how many months it will take you to recapture the pre-paid interest—otherwise known as “breaking even”. You will want to retain the mortgage for at least that long to make paying for those mortgage points upfront worthwhile. In contrast to positive points, applying negative points to a mortgage increases your interest rate but can reduce closing costs. Check out below to see what sold in Deerbrook in July 2015:
41425 Reindeer Drive, Novi: 4 bedrooms, 3.1 bathrooms, 2,934 sq. feet, 2 car garage, Sold Price: $439,500
Deerbrook Home Sold
July 2015
If neither mortgage points option feels right for you, or does not meet your financial needs, ask your lender for another loan without any points. For more information on Deerbrook, or similar Northville or Novi neighborhoods such as Mystic Forest, Windridge and Yerkes Manor, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.