You are buying a $300,000 house and are shopping around mortgage. You plan to finance 80% of the house price via fix-rate traditional mortgage. Your mortgage broker quoted you the $240,000 mortgage loan for 15 years term at an APR at 3.75%. However, he suggest that you consider paying an upfront cost of $3000 in exchange of a lower APR at 3.5%. Assuming there is no other closing cost except this fee for the lower APR rate. You evaluated that you are likely to sell the house in 5 years. Should you pay the cost for the lower APR at 3.5%? Yes, paying the upfront gives the lower effective borrow rate loooo O No. paying the upfront cost gives the higher effective borrow rate Previous You are buying a $300,000 house and are shopping around mortgage. You plan to finance 80% of the house price via fix-rate traditional mortgage. Your mortgage broker quoted you the $240,000 mortgage loan for 15 years term at an APR at 3.75%. However, he suggest that you consider paying an upfront cost of $3000 in exchange of a lower APR at 3.5%. Assuming there is no other closing cost except this fee for the lower APR rate. You evaluated that you are likely to sell the house in 5 years. Should you pay the cost for the lower APR at 3.5%? Yes, paying the upfront gives the lower effective borrow rate loooo O No. paying the upfront cost gives the higher effective borrow rate Previous