Not exact matches
Borrowers who chose a
loan with a shorter repayment term in order to get the lowest interest rate and maximize overall savings reduced their interest rate by 1.71 percentage
points and will pay $ 18,668 less
over the
life of their
new loan, on average.
In that case, you add the
points paid on the latest deal to the leftovers from the previous refinancing and deduct the expense on a pro-rated basis
over the
life of the
new loan.
Also, you can deduct the
points you pay to get the
new loan over the
life of the
loan, assuming all
of the
new loan balance qualifies as either acquisition debt or home equity debt
of up to $ 100,000.
Borrowers who chose a
loan with a shorter repayment term in order to get the lowest interest rate and maximize overall savings reduced their interest rate by 1.71 percentage
points and will pay $ 18,668 less
over the
life of their
new loan, on average.
As a result, the average effective rate on
new home
loans (which amortizes initial fees
over the estimated
life of the
loan) edged down from 4.16 to 4.14 percent — continuing the downward drift that began after a 26 basis
point surge in June.
The combination
of declines in the contract rate and initial fees took the average effective interest rate on
new home
loans (which amortizes initial fees
over the estimated
life of the
loan) down 8 basis
points to 4.39 percent (after two consecutive months above 4.40).
Points paid when you refinance an existing mortgage must be deducted
over the
life of the
new loan.