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Kitchen Updates That Don’t Require a Remodel

NAR Daily News Magazine - November 14, 2017 - 12:00am

If sellers want to revamp their house before it hits the market, or if buyers are seeking a cheaper way to improve a dated kitchen...

Categories: Real Estate

Market Grows for Senior Downsizing Services

NAR Daily News Magazine - November 14, 2017 - 12:00am

Older clients looking to downsize may need some extra help from moving professionals.

Categories: Real Estate

6 Extra Costs In A Home Buyer’s Budget

NAR Daily News Magazine - November 14, 2017 - 12:00am

Make sure your buyers don’t leave out any of these additional homeownership costs.

Categories: Real Estate

Single-Family Rentals Edge Out Apartments

NAR Daily News Magazine - November 14, 2017 - 12:00am

Here’s why detached homes and townhomes are developing faster than any other segment of the housing market.

Categories: Real Estate

What Pets Secretly Loathe About Your Home

NAR Daily News Magazine - November 14, 2017 - 12:00am

Find out your pets’ pet peeves.

Categories: Real Estate

What Are Mortgage Points? Should You Pay Them?

RisMedia - November 13, 2017 - 2:47pm

(TNS)—When people want to find out how much their mortgages cost, lenders often give them quotes that include loan rates and points.

What Is a Mortgage Point?
A mortgage point is a fee equal to 1 percent of the loan amount. A 30-year, $150,000 mortgage might have a rate of 7 percent but come with a charge of one mortgage point, or $1,500.

A lender can charge one, two or more mortgage points. There are two kinds of points:

  1. Discount points
  2. Origination points

Discount Points
These are actually prepaid interest on the mortgage loan. The more points you pay, the lower the interest rate on the loan and vice versa. Borrowers typically can pay anywhere from zero to three or four points, depending on how much they want to lower their rates. This kind of point is tax-deductible.

Origination Points
This is charged by the lender to cover the costs of making the loan. The origination fee is tax-deductible if it was used to obtain the mortgage and not to pay other closing costs. The IRS specifically states that if the fee is for items that would normally be itemized on a settlement statement, such as notary fees, preparation costs and inspection fees, it is not deductible.

How do you decide whether to pay mortgage points, and how many? That depends on a number of factors, such as:

  • How much money you have available to put down at closing
  • How long you plan on staying in your house

Points as prepaid interest reduce the interest rate—an advantage if you plan to stay in your home for a while—but if you need the lowest possible closing costs, choose the zero-point option on your loan program.

By the Numbers…
A lender might offer you a 30-year fixed mortgage of $165,000 at 6 percent interest with no points. The monthly mortgage principal and interest payment would be $989. If you pay two points at closing (that’s $3,300) you might be able to drop the interest rate down to 5.5 percent, with a monthly payment of $937. The savings difference would be $52 per month, but it would take 64 months to earn back the $3,300 spent upfront via lower payments. If you’re sure you will own the house for more than five years, you save money by paying the points.

©2017 Bankrate.com

Distributed by Tribune Content Agency, LLC

This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia.

For the latest real estate news and trends, bookmark RISMedia.com.

The post What Are Mortgage Points? Should You Pay Them? appeared first on RISMedia.

Categories: Real Estate

Watch: Real Estate Agent vs. Rattlesnake

NAR Daily News Magazine - November 13, 2017 - 12:00am

A practitioner in Scottsdale, Ariz., was trapped inside during an open house when a diamondback rattlesnake came to the front door. See how he got...

Categories: Real Estate

Realtor.com®: Housing Boom Is Officially Back

NAR Daily News Magazine - November 13, 2017 - 12:00am

Prices have returned to bubble levels, but economists say what’s causing today’s rapid rise is different than 10 years ago, when the...

Categories: Real Estate

Buyers Want ‘Sold’ Photo Shoot After Closing

NAR Daily News Magazine - November 13, 2017 - 12:00am

Instead of popping the champagne after your clients officially become new homeowners, how about setting up a photo shoot to help them document the...

Categories: Real Estate

5 Reasons You’re Getting Few Online Leads

NAR Daily News Magazine - November 13, 2017 - 12:00am

Make sure visitors to your website do more than just stop by for a quick browse. Here’s how to get them to take action and contact you.

Categories: Real Estate

Foreclosure Fears in Aftermath of Hurricanes

NAR Daily News Magazine - November 10, 2017 - 12:00am

Housing experts worry that millions of foreclosures will surface in Texas, Florida, and Puerto Rico after recent storms forced owners from their...

Categories: Real Estate

Senate Bill Cuts Property Tax Deduction, Keeps MID

NAR Daily News Magazine - November 10, 2017 - 12:00am

The proposed tax reform bill preserves the $1 million cap on the mortgage interest deduction, but will still lead to higher...

Categories: Real Estate

Glitch in Messaging Apps May Expose Calls

NAR Daily News Magazine - November 10, 2017 - 12:00am

A defect in nearly 700 iOS and Android apps could expose your private messages and calls.

Categories: Real Estate

Mortgage Rates Take Slight Dip This Week

NAR Daily News Magazine - November 10, 2017 - 12:00am

Mortgage rates were down across the board this week, lowering borrowing costs for potential home buyers and refinancers. 

Categories: Real Estate

Freddie: Housing Bubble Fears Too Inflated

NAR Daily News Magazine - November 10, 2017 - 12:00am

Housing price bubble fears may be overinflated, but economists are quick to say today’s market is not overheating.

Categories: Real Estate

Consumers Rank Their Lender Satisfaction

NAR Daily News Magazine - November 10, 2017 - 12:00am

A new study finds borrowers are less happy this year, but some lenders score high marks when it comes to customer satisfaction.

Categories: Real Estate

Master the Art of Asking Questions

NAR Daily News Magazine - November 10, 2017 - 12:00am

Train your agents on how to get clients to open up and say what they’re really thinking by asking the right questions.

Categories: Real Estate

Use Aluminum Foil to Strengthen Wi-Fi Signal

NAR Daily News Magazine - November 9, 2017 - 12:00am

Researchers at Dartmouth University have discovered that a simple hack can improve a wireless network’s range and increase Wi-Fi security....

Categories: Real Estate

Senate Tax Bill Another Shot at Homeowners

NAR Daily News Magazine - November 9, 2017 - 12:00am

The National Association of REALTORS® is reviewing the plan but says more still needs to be done to protect homeowners from a tax hike.

Categories: Real Estate

Are 5,000-Square-Foot Homes Too Big?

NAR Daily News Magazine - November 9, 2017 - 12:00am

The share of new homes that are 5,000 square feet or more is dropping. 

Categories: Real Estate