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Real Estate

Homeowners Admit to ‘Real Estate Stalking’

NAR Daily News Magazine - November 16, 2017 - 12:00am

Have you ever spied online to find out how much someone paid for their home?

Categories: Real Estate

Would-Be Sellers Fear Becoming Priced-Out Buyers

NAR Daily News Magazine - November 16, 2017 - 12:00am

Becoming a buyer is the problem that’s making more homeowners hesitant to sell.

Categories: Real Estate

Lenders: 3% Mortgages Key for First-Timers

NAR Daily News Magazine - November 16, 2017 - 12:00am

Mortgage lenders believe first-time home buyers will make up a larger portion of their business in the new year.

Categories: Real Estate

CFPB Director Richard Cordray Steps Down

NAR Daily News Magazine - November 16, 2017 - 12:00am

Some organizations and lawmakers view the chief’s resignation as an opportunity to restructure the Consumer Financial Protection Bureau...

Categories: Real Estate

Where You Can Find the Cheapest Mansions

NAR Daily News Magazine - November 16, 2017 - 12:00am

Home shoppers looking to live in a mansion will find their money stretches the most in these locales.

Categories: Real Estate

House Passes 5-Year Flood Insurance Extension

NAR Daily News Magazine - November 15, 2017 - 12:00am

The Senate must approve the bill if long-term reauthorization of the National Flood Insurance Program is to take effect before it expires on Dec....

Categories: Real Estate

Bill Gates Plans for ‘Smart City’ in Ariz.

NAR Daily News Magazine - November 15, 2017 - 12:00am

The Microsoft founder’s real estate investment firm has spent $80 million for a large plot of land outside of Phoenix that it plans to...

Categories: Real Estate

Facebook Makes Big Push Into Rental Listings

NAR Daily News Magazine - November 15, 2017 - 12:00am

Facebook plans to significantly expand its rental real estate listings section in its Marketplace as it attempts to better compete against...

Categories: Real Estate

Rental Costs Are Still Surging in These Cities

NAR Daily News Magazine - November 15, 2017 - 12:00am

Renters are facing a steep run-up in prices in these locales. Maybe you can convince them to spend that money on homeownership instead. 

Categories: Real Estate

Affordable Housing Crisis Hits Rural Areas

NAR Daily News Magazine - November 15, 2017 - 12:00am

Rural areas, particularly those in second-home or retiree havens, lack enough affordable and adequate housing for local working families,...

Categories: Real Estate

As Rates Hit Pause, Consumers Rush to Lock In

NAR Daily News Magazine - November 15, 2017 - 12:00am

A slight dip in interest rates last week brought more homeowners and home buyers to the mortgage market.

Categories: Real Estate

Home Features, Not Brands, Lure Young Buyers

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

A recent survey of 20,000 new home shoppers reveals what motivates them in the purchase process. 

Categories: Real Estate

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