11-14-2012, 04:41 PM
davester, I have the option of "rolling" the closing costs into the loan, but figured it would be better to pay them outright, rather than to end up paying interest on the closing costs (which would be the case if I rolled them into the loan).
Are you saying, though, that I should not even pay the closing costs up front, but should instead get a loan with no closing costs at all, even if it means a higher interest rate?
By my calculations (using my *real* numbers), if I take the full 15 years to pay back my loan at 2.75% as opposed to the same loan at 3.00% (a guess at the rate I'd get with a no closing cost loan), I'd save $5812.20, which would be more than the closing costs (but only maybe $1000 in savings when it's all said and done, but still a savings).
Granted, I need to find out exactly how much higher the rate would be if I don't have to pay closing costs. If it doesn't go up .25% as in my example, the savings could be less or nonexistant.
That also likely means I'd need to shop around more, and I am having trouble finding time during the day to do the "shopping." I'd also hate to *not* find a no-closing cost loan, and end up losing the 2.75% rate I should be able to get right now.
Are you saying, though, that I should not even pay the closing costs up front, but should instead get a loan with no closing costs at all, even if it means a higher interest rate?
By my calculations (using my *real* numbers), if I take the full 15 years to pay back my loan at 2.75% as opposed to the same loan at 3.00% (a guess at the rate I'd get with a no closing cost loan), I'd save $5812.20, which would be more than the closing costs (but only maybe $1000 in savings when it's all said and done, but still a savings).
Granted, I need to find out exactly how much higher the rate would be if I don't have to pay closing costs. If it doesn't go up .25% as in my example, the savings could be less or nonexistant.
That also likely means I'd need to shop around more, and I am having trouble finding time during the day to do the "shopping." I'd also hate to *not* find a no-closing cost loan, and end up losing the 2.75% rate I should be able to get right now.