Killeen Fort Hood Real Estate

And just what ARE points?  

Sounds mysterious, doesn't it?   

Boiling this down to the simplest explanation, paying points (also called discount points) means you are paying a lump sum of interest up front at the beginning of your loan to get a lower interest rate for the full term of your loan.   That's all it is.  Money out of your pocket into your lender's pocket,

Should you pay points when buying a home at Fort Hood?    

It depends on how long you are keeping the home.   Here's an example:  

 If you pay $1,000 to get a lower interest rate, and the lower rate saves you $20 a month:   

$1,000 divided by $20 equals 50 months 

You must own the home for 50 months to recoup what you paid in points.  After the 50^th month, you will finally be saving $20 a month through the term of your loan. 

Since most homebuyers at Fort Hood are active duty military, paying points is usually not the best course of action.    There's no guarantee that you'll be here long enough to reap any benefit from buying down your interest rate.   

So keep your money in the bank and feel confident you made the right decision regarding paying points when you buy your home at Fort Hood.   You can use that money to make updates and improvements to your new home that will pay off well when it's time to sell.

If you do want to consider paying points, ask your lender to compute the savings and how long it will take for you to recover the cost of the lower interest rate.

To see more about how points affect mortgage payments, check out this Points Calculator.

Mary Ann Daniell is a Licensed Texas Realtor serving the Killeen Fort Hood real estate market.  Call or email anytime if you need help buying or selling a home, or if you just have questions about what to expect for housing when you arrive at Fort Hood.

Wow, what an obnoxious headline!   

And why in the world am I even writing about it?

My husband and I  usually work on weekends, but last weekend we sneaked off to go to the beautiful Austin Convention Center to the spring RV Show.   We've become real outdoor types the past few years and have finally indulged and bought a fifth wheel and are really enjoying the time with the family and the dogs, even if it's just a quick camping trip.

Anyway, back to the reason for this post.     As we were walking through literally hundreds of shiny, clean RVs (no dog hair, wet bathing suits, or stinky shoes!), I could overhear snippets of conversation between the sales people and their prospective buyers:

"If you want to buy, you need to do it today.  This price is only good for the show."

"Well, we can buy your old unit and get you right into this new unit for the payment you want!"

"OF COURSE you can pull this unit with a half-ton truck!"(ask me about this one HA!)

"So tell me what it's gonna take to get your business today?

You get the picture.  

Personally,  I can NOT imagine talking to a buyer or a seller like that.   I know these salespeople are probably good at what they do and I don't want to offend them, but I found it very distasteful to listen to the pressure they were putting on people, and to some of the half true (or outright untrue) statements that were flying around.

As far as I'm concerned, houses here at Fort Hood sell themselves.  There's no place for pressure on you from an agent.    You, the buyer, will KNOW when you walk into the home that's right for you.  Pressure from an agent should NEVER be allowed to enter the home buying formula.   

My responsibility is to help you sort out your choices, to answer ALL your questions about the homes, the community, and the process of buying a home (or to tell you I don't know the answer but will find out).  I also make sure you have all pertinent disclosures about the property.   No pressure there.  Just people making informed decisions.

 I would never make it the sales world outside of real estate!   

Thanks for reading my Fort Hood Texas real estate blog. Shoot me an email anytime if you need help buying a home or selling a home in the Killeen Fort Hood area!