126
What things am I a dumbass about?
(lemmy.nz)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 29 Feb 2024
126 points (95.0% liked)
Asklemmy
43982 readers
1106 users here now
A loosely moderated place to ask open-ended questions
Search asklemmy ๐
If your post meets the following criteria, it's welcome here!
- Open-ended question
- Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
- Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
- Not ad nauseam inducing: please make sure it is a question that would be new to most members
- An actual topic of discussion
Looking for support?
Looking for a community?
- Lemmyverse: community search
- sub.rehab: maps old subreddits to fediverse options, marks official as such
- !lemmy411@lemmy.ca: a community for finding communities
~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~
founded 5 years ago
MODERATORS
That's wild. When I was getting a mortgage for my house, the lender was like "your interest rate is X, but if you pay $Y you can add a 'point'". I'm like "wtf is a point?" Turns out, it's a roundabout way of saying, higher down payment = lower interest rate.
It already wasn't obvious what their jargon meant, so for you to have a sales person offering the exact opposite of what my lender did, actively bribing customers to take a worse deal for themselves, it's just...scummy.
Yeah, buying points is a bit different though and again is a great example of why everyone should at least have a basic understanding of how to make an amortization schedule.
Buying points isn't exactly the same as a higher down payment, because that money doesn't take any principal off your loan. It's basically paying interest up front, giving the lender a lesser amount now rather than a greater amount later.
Shit gets complicated real quick, so plugging it into an Excel spreadsheet makes it much more clear.
Cool, see I didn't even know about that difference lol. To me it amounted to "do you want to pay us more up front for a lower monthly rate", which just sounded like the same thing as a larger down payment.