The Fresno Bee from Fresno, California • 54

D4 Sunday November 8 1992 The Fresno Bee What is the real cost of points? American Classic Homes Presents WmriLLIAMBBTOj 30-year mortgage Nominal rats 600 625 650 675 700 755 750 775 800 825 650 675 KlfJOn fiDi JEZStMk 4- There's no simple answer because the real cost of points depends on how long be keeping the mortgage By Pamela Reeves Soipps Howard News Service One of the hardest things for most home buyers to calculate is the real cost of points those wallet-breaking diarges that lenders tack on when you apply for a mortgage A point is equal to 1 percent of the amount borrowed so that two points on a $150000 mortgage would be $3000 and two points on an $80000 mortgage $1600 But is it better to get a mortgage with an 8 percent interest rate and 1 point or a 775 percent interest rate and 3 points? no simple answer because the real cost of points depends on how long be keeping the mortgage The longer you stay in the house the cheaper the points A new paperback from Consumer Reports Mortgage Book" by John Dorfman includes a handy formula you can use when shopping for a mortgage as well as a chart that makes a more precise calculation The formula works this way Take the number of points being charged and divide it by the number of years you expect to stay in the house Add the fraction that you get to Starting at 129950 CAIfVET VA fi anting aaeffaMe Willow ft Alluvial (East of Willow North of Alluvial) Open Daily Noon -5 PM Closed Thursdays CLOSE OUT PRICES at Williamsburg Manor II Model Homes For Sale the mortgage interest rate For example you think be in the house for about seven years and are comparing the two interest rates above 8 percent interest with 1 point and 775 percent interest with 3 points Using the formula with the 8 percent rate (1 point divided by 7 equals 142) gives you a real interest rate of 6142 Using the formula with the 775 percent rate ana three paints (3 divided by 7 equals 428) gives you a real interest rate of 6176 Both rates are about the same for a family staying in the house Beven years If you have to move sooner than years the higher rate with lower points would be better If staying longer the 775 percent rate would be the best choice If you don't know how long be in the house Dorfman suggests using 10 years in your calculation Iryoull be in the three years or less try not to pay any You probably will be able to find a who will cancel all the points in return for a higher rate of interest Dorfman says this quick calculation is just an approximation because it ignores the time value of money 3 323-7273 Cjfjbwf Jfcr CUmleAmmtcm Frajmritm BUSS fid for 8 jtm thee roll cwr to eurtat rnte (APS Dunes owner says hotel-casino will be closed early next year But the action 'subject to change' attorney involved says Dunes at a bankruptcy auction in 1987 The property has been losing $2 million a month and Nangaku still owes the bank $90 million be there on behalf of the Goed and and Carp executive Mirage Resorts Inc Chairman Steve Wynn announced earlier thw month flint Via hnri rignari an agreement to buy the Dunes from Nangaku Wynn is faring a trdsehis hold out false hopes but there have been some diacuaaiona on the rethinking of the closure subject to Wynn has said he may build a theme park along with some low-rise hotels on the properly But Mirage Resorts spokesman Alan Feldman declined comment on the plana Tuesday we intend to offer all Dunes employees in good standing a priority position in our hiring fin: Treasure Island and for those jobs at The Mirage and Golden Nugget which are created by people having moved to Treasure Wynn who owns The Mirage and Golden Nugget in Las Vegas is scheduled to open Treasure Island there in November 1993 Feldman said that company executives will decide within 30 to 45 days what to do on the property once the deal for the Dunes doses earjy next year CARSON CITY Nev The financially troubled Dunes Hotel in Las Vegas plans to dose in the next 60 to 90 days the state Gaming Commission was told last week Richard Goeglein head of a transition team that will help run the hotel-casino in its final months said Tuesday that the move was ordered by Dunes owner Maaao Nangaku Under federal law the 1400 workers must either be given a 60-day notice of closure or 60 days pay Sumitomo Bank Ltd a Japanese bank that holds the mortgage on the Dunes loaned Nangaku $1577 million to buy the option to buy the property Bruce Leslie an attorney representing Sumitomo said Mirage Resorts inni atari on the closure as part of the proposed sales agreement the current thought at this wheat asked by commission members whether there were plans to dose the Dunes But he added: don't want to Happy Families Are Our Goal news keeps oft Big Country E(- Special belftw-lMricerfmari btsAnd klUTrend Big Cofintry 1 i mm ri more than fOhomes in foftr a -V-'1 -v "I- i Fresno New Frontier i IrSEMSh 1 'r 'A ii'iii 'ill nriim wiiiiii Village Green Orchard Oaks US Home is proud to offer communitites where families will be proud to raise children Unique floorplans of 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BSjbi-l tWO-d tillage Qiketi Pre-Grand Opening Prices From the $90 3 Bedrooms Open daily 10 am to 5 mi dosed Tuesdays 276-0611 ORCHARD OAKS Final Phase Just Released From die 3 Bedrooms Open daily 10 am to 5 pm 297-9302 America call in honW US-Home ini HNh WOCk lalHANU A Sfcaw Aw MspNwToScW Brent1 RtaNyAgant FHA Conventional Financing through Pacific Mortgagai CekMt Inane watoonw toa MM to quaWiad twyars hi tat 13 Itaoutfi 68 VQUCNI qrhca4jktia4at.