A disadvantage of negative points is often mortgage lenders who sell their negative points packages through independent mortgage loan companies. The loan officers and mortgage brokers of these companies some times will take advantage of the situation and raise their prices for more commissions.
Unfortunately it is hard to identify these discrepancies because it’s difficult to track those who are raising the negative points. Your best bet is to research and educate yourself about current negative points packages that are available to you to insure you are getting the best deal.
Most people however find it to be a great investment to pay mortgage points to secure a lower interest rate. The savings produced from this investment gets larger the longer you remain in the home.
