I’ve heard of people buying their interest rate down by purchasing “points” on their VA loans. Anybody have any info on this? How it works or how many points you can buy and at what cost? TIA
Buying VA Loan interest rate points
byu/Lonewolf_806 inMilitaryFinance
Posted by Lonewolf_806
2 Comments
points is legally and literally prepaid interest…so if you pay 1 point ie 1% of the loan amount up front your rate will decrease by xx % from the par rate (0 points)…if you sell or refinance it you lose that money forever…cost is lender specific.
Don’t buy points if you can help it. You buy as many as you want but it can get really expensive. I’d shop with some mortgage brokers to see if they can get you some good rates versus you trying to apply to a bunch of banks. That’s what we did, with such a trash market currently.