Michael Bell - Home Lending Professional

10/23/2026

Mortgage Points and Rate Buydowns: When Paying More Up Front Saves You Money

If you're hunting for a new home, you already know how quickly closing costs can add up. As you're crunching numbers and diligently researching how to reduce your mortgage payment, you might come across compelling information about rate buydowns, but there's a catch. Paying up front for a lower rate only works if you keep the original mortgage long enough for your monthly savings to recover the money you spent at closing. So, is buying mortgage points worth it? Here's how to find out.

Start With the Break-Even Math

Think of discount points as prepaid interest. Each point costs 1% of the total loan amount, so if you're considering buying one point on a $320,000 mortgage, you can expect to pay $3,200 up front. But here's where things get tricky: How that point affects your rate will vary depending on your lender, so it's worth comparing quotes.

If you've already selected a loan officer to work with, ask them for the loan rates with zero points and with the number of points you're considering. Assess both options carefully, and use the equation below to uncover when you would break even:

Cost of points / monthly payment savings = number of months to break even

Permanent Savings or a Temporary Head Start?

If your goal is to permanently lower your mortgage rate, buying points might make sense, but only if you plan to keep the loan beyond your break-even point. If you do, you'll reap the benefits until you sell, refinance, or finish paying off the loan. However, if you're considering a temporary buydown, it's important to note that you'll only reap the rewards during the opening years. That's because it doesn't change your mortgage rate. Instead, a funded account makes up part of your payment for a designated period of time.

For example, in a 2-1 buydown, your monthly payments will seem as if they're two percentage points lower during the first year and one point lower during the second year. By year three, you'll need to start paying your full monthly mortgage. A 3-2-1 buydown follows the same pattern over three years.

Who's Covering the Cost?

In a slow market, sellers and builders may use buydowns to attract buyers without advertising a price cut. This can free up capital each month for the buyer to put toward repairs, new furniture, or other early homeownership costs. Just make sure to review with the preferred lender to ensure the rate is actually competitive before this incentive.

In general, permanent points can be an effective option for borrowers who expect to keep the property and original mortgage long enough to break even. But if the up-front expense would drain your cash reserves, you don't plan on residing in the home long enough, or you might refinance, then you're probably better off skipping points altogether. Either way, consult with your loan officer who can thoroughly compare options with you before making a move.

Sources: Investopedia.com, Fastexpert.com, Littleseedfarm.com

10/21/2026

What are your most important wants when buying a home?

🤔 How far is too far from the grocery store?

Before buying a home, think about more than just the number of bedrooms and bathrooms.

Ask yourself: 🏠 What does your ideal day look like? 🚗 How important is convenience? 👨‍👩‍👧‍👦 What does your family need? 🌳 Are you ready for the upkeep of a large yard or property?

Finding the right home starts with understanding your lifestyle. A little planning today can lead to years of happiness in your new home.

10/20/2026

Escrow Accounts 101: What Happens to Your Money After Closing

After you've celebrated closing day, you might have a few lingering questions about your purchase. One of the most common points of confusion for new homeowners is escrow. During real estate transactions, escrow accounts are often set up to collect a portion of your monthly mortgage payment. This money is set aside to cover additional expenses, such as property taxes and homeowners insurance. In theory, this arrangement should make it easier to balance your budget, but there are a few important details you need to be aware of before you set up auto-pay and move on.

Your "fixed" monthly mortgage payment might fluctuate.

Having a fixed-rate mortgage locks your interest rate, but it doesn't freeze all of the other expenses that are included in your monthly payment. The amount your lender collects can still vary if your property taxes or home insurance premium changes.

You could end up with a shortage or surplus at the end of the year.

Most lenders review escrow accounts on an annual basis. During this review, they'll compare what you paid with what you actually owed. If your account comes up short, you may owe additional money or choose to increase your monthly payment for a set period of time to make up the difference. On the other hand, if there's a surplus, it could be your lucky day. Depending on the circumstances, your lender may send you a refund.

You might be able to opt out, but there are tradeoffs.

Some lenders will let you opt out of having an escrow account after certain conditions are met, but it depends on the type of mortgage you take out. However, there are pros and cons to waiving escrow. Closing this account gives you more control over your money. That sounds good, but it also means you need to budget, track, and pay for your property taxes and homeowners insurance yourself. Failing to do so could mean you end up with a big surprise when bills come due.

As a new homeowner, it's important to keep an eye on your escrow account. Compare any statements you receive from your lender with your tax and insurance bills to catch potential errors early. If the numbers don't match or you have a question, contact your mortgage servicer to request a review. They'll be able to guide you through the process and make adjustments if necessary.

Sources: Nar.realtor, Investopedia.com

10/19/2026

🏡 Self-Employed and Thinking About Buying a Home?

Yes, you can qualify for a mortgage!

Lenders typically look for: ✅ 2 years of tax returns
✅ Bank statements
✅ Profit & Loss statements
✅ Business stability and income consistency

However, exceptions may apply, especially if you've recently started your own business but have years of experience in the same industry.

Every situation is unique, which is why it's important to work with a loan professional who understands self-employed borrowers.

Have questions about your options? Let's talk!

📞 (770) 861-4106
📧 Michael Bell, NMLS #155728
Georgia United Credit Union

10/17/2026

💡 Did You Know?

Your Debt-to-Income Ratio (DTI) plays a major role in qualifying for a mortgage.

DTI measures how much of your monthly income goes toward debt payments. The lower the percentage, the less financial risk you present to a lender. The higher the percentage, the more flexibility you may have to purchase a home, depending on the loan program.

Not sure where your DTI stands? A quick review can help you understand:

🏠 How much home you may qualify for
💰 Available loan programs
📋 Steps you can take to improve your borrowing power

Let's connect and discuss your homeownership goals!

10/16/2026

10/09/2026

There is always a silver lining in every situation. ☀️

I saw mortgage rates move higher this morning. 🚀 While nobody enjoys seeing rates increase, there is another side of this market that buyers shouldn't ignore.

When rates rise, some buyers choose to step to the sidelines.

And when competition decreases, buyers who stay in the game may gain something incredibly valuable:

🎯 Leverage

Depending on the property and market conditions, that could mean negotiating:

✅ Lower purchase prices
✅ Seller-paid closing costs
✅ Permanent rate buydowns
✅ Temporary 3-2-1 buydowns
✅ Repairs and improvements
✅ Builder incentives

Higher rates don't necessarily mean fewer opportunities. In many cases, they can create opportunities that weren't available when competition was at its peak.

The key is understanding your options and having a strategy. 🏡

10/09/2026

Did you know: A mortgage loan recast is a way to lower your monthly mortgage payment without refinancing your loan.

Here's how it works:

You make a large lump-sum payment toward your mortgage principal.
The lender then recalculates (recasts) your remaining balance over the remaining loan term.
Your interest rate and loan term stay the same, but your monthly payment decreases because you're now paying off a smaller balance.

10/07/2026

🏡 Thinking about buying a home? Before you start shopping, make sure you know the steps to take to set yourself up for success. Check out this magazine for helpful homebuying tips, expert insights, and important things to consider before making one of life's biggest investments!