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Rainmaker
940,850
Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

How long will you own the home and is it a rental, primary or second home?

Jun 08, 2017 05:02 PM
Rainmaker
3,857,201
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Read Thomas J. Nelson, Realtor, CRS answer.

Jun 08, 2017 07:23 PM
Rainmaker
1,263,102
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I don't because they're not.

Jun 08, 2017 04:32 PM
Rainmaker
777,342
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

George Souto just wrote a good post on this: http://activerain.com/blogsview/5065824/why-do-i-have-to-pay-points-

-Kasey

Jun 08, 2017 04:29 PM
Rainmaker
5,118,615
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

it depends on how long you'll be living in the home....if it's a short stay, it may not be worth it.... a discussion to have with the lender....

Jun 08, 2017 03:51 PM
Rainmaker
1,111,243
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I don't, I leave that to the licensed mortgage broker.

Jun 08, 2017 02:52 PM
Rainmaker
3,210,952
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I don't...it's up to my clients and their lenders to do the analysis as to the value. And yet another question that has been asked and answered and asked and answered more times than I can count. And guess what... my answer hasn't changed.

Jun 09, 2017 04:05 AM
Rainmaker
456,805
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

This is a great question for a lender

Jun 08, 2017 07:39 PM
Ambassador
3,983,649
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Your lender will show you the break even point if you don't know how to figure it.

Jun 08, 2017 07:09 PM
Ambassador
1,665,480
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Helping you find your way home.

I don't.  I leave that up to the client and their loan officer.

Jun 08, 2017 06:53 PM
Ambassador
2,363,840
Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

HP 12C Financial Calculator.

Jun 08, 2017 02:39 PM
Ambassador
1,655,781
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I don't think they are worth it at any time.

Jun 08, 2017 02:33 PM
Ambassador
4,366,493
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I find a spreadsheet helps, best to know how long you will be staying too.

Jun 08, 2017 08:15 PM
Rainmaker
744,925
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Crunch some numbers.

Jun 08, 2017 07:20 PM
Rainmaker
3,050,161
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

You make a chart, how much the loan payment is with and without the points. Divide the points by monthly saving and that is how many months you must live there, most often it is 5 to 7 years anyway to see a savings of paying points

Jun 08, 2017 02:41 PM
Rainmaker
5,501,821
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Compare with the alternatives and consider what is best for your prospective mortgage borrower.

Jun 08, 2017 02:40 PM
Rainmaker
525,754
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

If you get the seller to pay the buyers points it's worth it.

Nov 05, 2017 09:24 AM
Rainmaker
4,160,324
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I do not get involved in the loan process.

Jun 12, 2017 06:56 AM
Rainmaker
3,363,721
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Thomas Nelson has the basics covered. Discount points are often not worth the upfront investment!

Jun 11, 2017 06:43 AM
Rainmaker
1,500,632
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

For yourself of for your client? It depends how long you plan to own that property. 

Jun 11, 2017 01:22 AM
Rainmaker
3,425,360
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Unless it's my own loan, I don't determine such things.  There are individual factors to consider and it should be a discussion between borrower and mortgage professional.  

Jun 10, 2017 05:50 AM
Rainmaker
3,241,192
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Discusssion with the lender.

 

Jun 09, 2017 04:58 PM
Rainer
243,524
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

If average person owns a house seven years, start with that number. 

What month does the difference between zero points and difference of payment balance? If it recoups on month 36, then great. If on month 80 not a good idea as is no savings

Jun 09, 2017 12:02 PM
Rainmaker
2,826,286
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Great questions to be addressed with a well qualifed lender.

Jun 09, 2017 07:46 AM
Rainmaker
3,054,229
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

I don't

Jun 09, 2017 07:07 AM
Rainmaker
1,384,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Brian Burkhalter Only the lender and the buyer can decide their value.

Jun 09, 2017 06:48 AM
Ambassador
1,614,040
Harry F. D'Elia
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

up to the buyer

Jun 09, 2017 06:30 AM
Rainmaker
4,797,822
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Discuss this with your lender.

Jun 09, 2017 05:59 AM
Rainmaker
1,367,410
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Brian,
Do you understand what "points" are?   It means you are paying an upfront fee to get a reduced interest rate for the life of the loan.  This, in return, reduces your monthly payment.    The longer you stay in the home, the better.   It is an easy calculation to determine the breakeven point, based on the monthly savings.

Jun 09, 2017 05:58 AM
Rainmaker
1,559,150
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Do your breakeven analysis based on the number of anticipated years of ownership

Jun 09, 2017 05:46 AM
Rainmaker
4,432,467
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answered.

Jun 09, 2017 05:14 AM
Rainmaker
3,127,190
Richard Weeks
Dallas, TX
REALTOR®, Broker

1 how bad do I want this loan?

2 if I really want it and paying the points is the only way I can get it then I guess the points were worth it.

Jun 09, 2017 05:09 AM
Rainmaker
4,571,764
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Thomas J. Nelson, Realtor, CRS  has your answer.

Jun 08, 2017 10:58 PM
Ambassador
4,301,228
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Brian Burkhalter - just see when the buyer breaks even...

Jun 08, 2017 10:21 PM
Rainmaker
1,035,078
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

You ask the lender to pay for points, closing cost, and appraiser.

Jun 08, 2017 09:52 PM