Home Buying - What is a point? - Orange County Real Estate

March Design 2009

Text Size

Joomla Professional Work

Home

What is a point?

Orange County Real Estate

What is a point?

Author:: Administrator
Date added:: Thursday, 07 May 2009
Last revised:: Friday, 12 June 2009

Hits:: 2454
Rating:
Vote for this:: -
favoured:: 0

Answer

One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments. One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments.

Category

Set as favorite

Email this

Trackback(0)

TrackBack URI for this entry

Comments (0) Add Comment

Add Comment

Subscribe to this comment's feed

Write comment

Joomla SEF URLs by Artio

3454

Short Sale

Search and Valuation

Real Estate Services

Great Deal

Follow Me

del.icio.us

Site Certification

Home Seller's Guide

Work Orders or Repair Requests
29.11.07
In every transaction there is usually a request for repairs given to the seller by the buyer. The work order is usually backed up by a third party inspection report. The following is a list of some possible work orders. The work orders must be completed prior to closing and the seller is responsible for having them done. Check with your local authorities for specific requirements.
Read more...
Showing Your Home
29.11.07
So, you've prepared your home to sell and have put it on the market. Now the call comes that a prospective buyer is coming to take a look. Here are some simple steps to take to make sure you home is being shown in the best light.
Read more...
The Proceeds from Your Home Sale
29.11.07
Once you've been given an estimate of market value, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful as you start looking for another home to buy.
Read more...
Pricing Your Home
29.11.07
In setting the list price for your home, you should be aware of a buyer's frame of mind . Based on a list of houses for sale in your neighborhood (which can be in the form of a printed list from us, or online search results that you've found yourself), buyers will determine which houses they want to view.
Read more...
Preparing Your Home to Sell
29.11.07
A house that "sparkles" on the surface will sell faster than its shabby neighbor, even though both are structurally well-maintained. From experience, REALTORS® also know that a "well-polished" house appeals to more buyers and will sell faster and for a higher price . Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can't see has probably also been maintained.
Read more...

Real Estate Investor's Guide

Managing Your Income Property
29.11.07
Owning income property is having a small business that runs out of your home. It has products (rental units), inventory (vacant units) and expenses. You have customers, your tenants.
Read more...
What is a Mature Property?
29.11.07
What the heck is a mature property? A mature property is a property that has a positive cash flow over a 12 month period after all of the expenses has been paid. Most investors like to buy properties that are mature from the moment they close escrow. This isn’t necessarily practical in many real estate markets in the US depending on your market you might be looking at 12-18 months. So, how do you mature the property? Get more income or get more equity.
Read more...
Why Should I Invest in Real Estate?
29.11.07
Real estate is one of the most uniquely beneficial investment vehicles available and also one of the safest investments you can make. You don’t hear of very many real estate investors going bankrupt. How come? The real estate market moves slowly and because it moves slowly it gives you the time to protect yourself against adverse markets.
Read more...
Exit Strategies with the Smallest Tax Consequences
29.11.07
There are a number of exit strategies available for the real estate investor that doesn’t want to do the day to day management of the property anymore. The problem is simple the IRS who likes to change the rules to keep us on our toes. CHECK WITH YOUR ACCOUNTANT FOR THE BEST STATEGY FOR YOU. Your account is up to date on the changes in the tax code and what the IRS is allowing and not allowing.
Read more...
What is Boot?
29.11.07
The devil is in the details. Boot is the profit from an exchange that occurs when a seller exchanges a property for a property of less value or a mortgage of less value. There are two kinds of Boot, the Cash Boot and the Mortgage Boot. Sounds simple but this can get complicated easily. Let’s make it simple. Here are a couple of examples…
Read more...

Home Buyer's Guide

Is My Real Estate Agent Representing Me or the Seller?
17.03.08
Here’s the myth…”If I have the listing agent write the offer, I’m going to get a better deal on the home.” This is absolutely false for a number of reasons.
1. The agent represents the Seller and the Seller only. They have no responsibility to you.
2. The listing agent doesn’t want to bring a low offer to their sellers, so they will push for a higher initial offer from you.
3. The listing agent is not allowed to disclose items to you that would put the seller at a disadvantage in the negotiation. You’re on your own.
4. The agent who is represents the seller is presenting the offer to the seller. You are not represented in the transaction.
Read more...
Why should I use my own agent instead of the listing agent to write the offer?
17.03.08
Here’s the myth…”If I have the listing agent write the offer, I’m going to get a better deal on the home.” This is absolutely false for a number of reasons.
1. The agent represents the Seller and the Seller only. They have no responsibility to you.
2. The listing agent doesn’t want to bring a low offer to their sellers, so they will push for a higher initial offer from you.
3. The listing agent is not allowed to disclose items to you that would put the seller at a disadvantage in the negotiation. You’re on your own.
4. The agent who is represents the seller is presenting the offer to the seller. You are not represented in the transaction.
Read more...
Positioning Yourself to Be A VIP Buyer
17.03.08
So, what is a VIP Buyer anyway? The simple definition is a buyer who can close the sale and proves it with documentation when they write an offer. Why is this important? IT WILL SAVE YOU MONEY!
Read more...
Do You Have a Plan for Buying?
17.03.08
A plan is something that most people over look when going into a new home purchase and if you don’t have one it could cost you lots and lots of money. A good REALTOR® will be able to help you with your plan. The biggest issue with your plan is TIME.
Read more...
Getting Your Financial House in Order
17.03.08
A new home purchase for most people is the most amount of money they will spend on a single purchase. Anxiety over this and shock and awe over the amount of money needed, is a perfectly natural reaction. So let’s take this step by step.
Read more...