Explain this, how can a lower rate cost you more?
[https://www.housingwire.com/articles/uwm-1-99-30-year-mortgage-rate-comes-with-a-catch/](https://www.housingwire.com/articles/uwm-1-99-30-year-mortgage-rate-comes-with-a-catch/)
In: Economics
Basically, the up front fees to get the low rate (sometimes referred to points) are more than the interest difference would be if you only stay for a few years. If you pay $5000 more up front to get the low rate, and the monthly difference is $50 then if you stay less than 100 months (about 8 years) then you’re effective interest payments will be higher.
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