Spam prevention
Rainmaker
1,531,144
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

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

Jun 08, 2017 05:02 PM
Rainmaker
4,976,070
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Read Thomas J. Nelson, Realtor, CRS answer.

Jun 08, 2017 07:23 PM
Rainmaker
1,498,708
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
809,258
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
5,583,173
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with 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
2,219,617
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
5,096,466
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte 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
780,694
Abby Stiller
TOP SELLING REALTY - Cape Coral, FL
SW Florida (239) 284-8637

This is a great question for a lender

Jun 08, 2017 07:39 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

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
2,048,295
Alan May
Jameson Sotheby's International Realty - Evanston, IL
An offer you can't refuse!

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

Jun 08, 2017 06:53 PM
Ambassador
2,679,649
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

HP 12C Financial Calculator.

Jun 08, 2017 02:39 PM
Rainmaker
1,712,551
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
6,357,805
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - 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
898,058
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
3,415,644
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
7,794,774
Roy Kelley
Retired - Gaithersburg, MD

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

Jun 08, 2017 02:40 PM
Rainmaker
544,014
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (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
5,850,412
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
5,194,033
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
1,619,316
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • 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
4,555,011
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 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
4,903,271
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
414,827
Caroline Gerardo
Licensed in 20 states - 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
Ambassador
3,339,834
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Great questions to be addressed with a well qualifed lender.

Jun 09, 2017 07:46 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

I don't

Jun 09, 2017 07:07 AM
Rainmaker
1,466,207
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
Rainmaker
1,617,866
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

up to the buyer

Jun 09, 2017 06:30 AM
Rainmaker
4,800,082
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
Ambassador
2,167,208
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

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
1,723,026
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

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

Jun 09, 2017 05:46 AM
Rainmaker
4,434,127
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
4,854,437
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
5,772,353
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
Rainmaker
4,319,419
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
1,237,595
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