Bo Thompson
American Dreams Mtg
320 Nancy Lynn Ln Suite B
Knoxville TN 37919
Cell 865-621-1781
Direct 865-934-1665
bo@bothompson.com
If you're buying a home, how long will it take to break even if you pay discount points to get a lower rate? If you're refinancing, how long will it take to recoup the closing costs from your monthly savings? In either case, all you have to do is divide the upfront cost (of discount points if you're buying a house and of all the closing costs if you're refinancing) by the monthly savings you would get. That tells you how many months it will take to break even. If it's going to take five years to break even but you expect to stay in the house four more years, it's probably not worth it.