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A standard fixed-rate mortgage is nearly always best if you don't know what you are doing---- assuming that you are paying an interest rate not too far above the prime rate.
Variable rate mortgages can be useful for people who can use the changing amounts of interest to hedge their taxes. But that probably isn't you. A variable rate mortgage is not necessarily bad, but at this time I think a fixed rate is probably better.
Points are just a negotiating tool. For the bank.
Like the down payment on a car, points exist to fiddle the monthly payment until it reaches whatever number the borrower is willing to accept.
Of course, if your bank is honest it really may not make that much difference. Money into points subtracts money from your payments. It all evens out.
The main thing to avoid (in my opinion) would be a lot of money down combined with a variable rate of interest. That gives you a lot of risk to inflation and at the same time more equity exposed to falling home prices.
Variable rate mortgages can be useful for people who can use the changing amounts of interest to hedge their taxes. But that probably isn't you. A variable rate mortgage is not necessarily bad, but at this time I think a fixed rate is probably better.
Points are just a negotiating tool. For the bank.
Like the down payment on a car, points exist to fiddle the monthly payment until it reaches whatever number the borrower is willing to accept.
Of course, if your bank is honest it really may not make that much difference. Money into points subtracts money from your payments. It all evens out.
The main thing to avoid (in my opinion) would be a lot of money down combined with a variable rate of interest. That gives you a lot of risk to inflation and at the same time more equity exposed to falling home prices.
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