If you do not plan to stay in the home for 2 1/2 years or more you might want to look into rebates or negative points. This is where the mortgage company gives you money for accepting a high interest rate. Anything more than 3 years though and you are paying a significant amount of interest and are no longer benefiting from the rebate because this package is only beneficial for short time home owners.
Negative points are used to finance the settlement price of the mortgage process. You can’t use these points as part of a down payment. Therefore, you should never agree to a higher interest rate whose negative points surpasses that of your settlement cost.
