I found this mortgage comparison tool at Bankrate to be really helpful in figuring out whether to pay points or not. I was in a similar situation (trying to decide when to lock and watching rates go lower and lower but hearing they were going to higher...) Hope it helps you decide! Here is a link that might be useful: Bankrate.com Mortgage Point Advisor

The Promissory Note you signed will spell out in length exactly how your interest rate(s) will be calculated. A copy would have been in with your loan closing documents. Your lender holds the original until it's paid in full. Anything other than what it says on the Note is just guessing. /tricia

I wouldn't bet my firstborn on such a proposition. It's the (short-term) low rates recently that have got so many homebuyers into trouble, when, after the initial term of the contract expired, and the rate increased rather drastically, judged that there was no way that they could afford those payments. With many such houses being put up for sale, house prices have been suffering some substantial drops in a number of markets. In many cases, the only price that will entice buyer interest is one lower than the amount still owing on the loan. So many who can't afford the higher payments, and can't sell the house for enough to pay off the mortgage ... just walk away. They might be better off trying hard to sell the house themselves, for the associated expenses will usually be lower than if the financial institution must foreclose, then sell it, and the possibility is that the owner can get a higher price than the financial institution. If the lender can find the former owner, and it's getting increasingly difficult to hide, that owner will almost certainly be presented with a bill for the difference, plus the costs associated with the sale. Not a pleasant situation. ole joyful

Hi FF, To assume or pretend that people disagree with your "theory" because we're incapable of understanding how you arrived at it is a pretty unwise conclusion to reach, IMHO, but if you really think that's true, fine by me. I have no idea of your (or anyone's) "capability"... I actually suspect that you are quite brilliant (if a bit blinded by cynicism sometimes... but perhaps that can just be an occupational hazard (friendly smile. ;~) Whenever I explain something, and someone doubts it in general (especially indirectly... what was that all about???) without referring to anything they specifically disagree with, it *APPEARS* that they don't comprehend what they are doubting. There's nothing at all WRONG with doubting something because a reader doesn't UNDERSTAND it... and for that reader to not understand it doesn't mean they are INCAPABLE of understanding it. THAT is what the exchange of Q&A is all about... bringing forth knowledge that may be new or unusual (or even uncomfortable) for others, and then fielding the ensuing dialogue to help bring understanding & clarity. FF, I respect you (if you didn't already know that.) If you bring forth legal issues in your realm of expertise (OK, I am assuming now,) I would virtually certainly sit at your knee (electronically speaking.) I make no claim of financial genius whatsoever... but I know that which I know, and I am aware that some of what I know very well is quite contrary to what so many common fallacies support. I'll continue to offer, and answer, in the attempt to contribute to the community's desire to learn. Please join me in that ;~) Cheers, Dave Donhoff Strategic Equity & Leverage Planner