What’s the “Point”?
In This Chapter
• Myths and misconceptions about points
• When points make sense for your client
• Who pays the points?
• The tax implications of points
• Points = pay for you
Points get a bum rap in the mortgage business. Most clients complain bitterly if you suggest a loan that has points, and I’ve never understood that. If you know you’re going to be in a house for at least five years, points are the best thing since sliced white bread. For the mortgage broker, each point paid means more money in your pocket. It’s a win-win situation.
So before your clients rule out any loan that has points attached to it, you need to educate them about the advantages—and yes, disadvantages—of points.
In this chapter, you’ll learn ...