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Originally Posted by VisualEcho
Without points? Forgive me. Is this that the rate is actually lower, but they are selling it higher?
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Generally you can purchase points that will lower your interest rate. It is an upfront cost that you can't get back even if you refinance the next day and the cost of each point will differ with bank and the market conditions. It takes longer to breakeven when you buy points and has never really made sense to me vs. just investing the money.
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Originally Posted by rebekahb
Since we're talking about re-fi's, how many people escrow their homeowners, flood, and property taxes vs paying them out of pocket. Ours were escrowed initially, but the current mortgage lady suggested I just pay them each year.
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If the interest rate is the same either way I would personally not escrow as you can earn on the money instead of it just sitting in an account. They usually hold 2+ months of additional for everything that comes out of the escrow so the balances can get pretty large for something you are earning no interest on.
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Originally Posted by Clark_Kent
I've always used an escrow account for property taxes and homeowner's insurance. Two less bill to worry about paying. Did your banker offer a benefit to not using an escrow account?
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Most of the banks with the best rates require an escrow and actually have an interest rate penalty (higher rate) if you chose not to escrow.