Is it a good mortgage interest rate?

Wow, what a great interest rate!Or is it??

       Not too long ago we saw historically low interest rates.  Rates dipping below 6%, even lower than 5% seem incredible, especially when I recall a time when rates soared over 18%.  I remember how thrilled I was in 1982, to find an owner/builder willing to finance the home we were purchasing from him, at 10%.
       Even though rates aren’t quite as low as they were, they are still good.
       And while rates are relatively low, borrowers need to clearly understand the rate their lender is quoting.  Are you buying down the interest rate? Is your lender charging you 2 points to get that 5% rate? 3 points?  4 points? 5 points?
       And what exactly is a point? A point is 1% of the loan amount. 
       So, is that a really great rate? Or are you paying a fortune in points? Buying down your interest rate might be to your advantage, and then again, maybe not.
       If (for example) you pay 4 points to buy down the interest rate on your loan of $150,000, you need to ask yourself if the $6,000 expense will save you sufficiant interest during the time you have the loan.  For each percentage point you buy down, it will take about one year to recoup the cost of one point.

Other Links of interest

http://www.havasumagazine.com/RE/FHALoans.htm

http://www.havasumagazine.com/RE/conventionalloans.htm

http://www.havasumagazine.com/RE/Buying.htm

http://www.havasumagazine.com/RE/Selling.htm

http://www.havasumagazine.com/RE/loans.htm

http://www.havasumagazine.com/RE/VALoans.htm

http://www.havasumagazine.com/RE/FAQ.htm

http://sanerealestate.com/Mortgage.htm