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Sure. It carries a 2-point premium. The buyer pays points for a reduced
interest rate. IF, and that's a very large if, the buyer keeps the loan for
the full 30 years, this can pay huge over the life of the loan. But, if the
buyer is prone to doing refi's to draw out equity, then he stands to lose
unless he figures out where the break-even point is, and stalls his refi
until it comes along.
PS
I pulled 2 points out of my ass, the buyer pays a premium (points) to get a
lower rate, I do not know how many points it would take to get a 5.5% rate,
but paying points is how it would be done.
"Regal53" <ramon_galvis@bellsouth.net> wrote in message
news:TVP6g.60918$Jk3.27925@bignews5.bellsouth.net...
> Saw a sign today on top of a Mercedes Homes model home: "5.5% fixed
> 30-year financing". Does anyone know the details? South FL area.
> "Regal53" <ramon_galvis@bellsouth.net> wrote in message
> news:X376g.27753$iB2.17755@bignews4.bellsouth.net...
>> Does anybaody participate in this NG anymore or is my OE excluding new
>> posts?
>>
>
>
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Re: Dead NG?
