Posted by Brent_IL on February 11, 2002 at 23:43:56:
Points as used in real estate means one full percent of the face amount of a mortgage. They are deducted from the loan proceeds and you get what’s left. The IRS classifies points as interest. The way it’s deducted depends on your relationship to the property.
$100,000 loan with 2 points = $100K minus $2,000 for a net of $98,000 to you.
Points? - Posted by Jeff
Posted by Jeff on February 11, 2002 at 23:30:29:
Hi I’m an aspiring real estate investor. I am a little scetchy on the real estate term “points” could someone explaint this to me? Thank$!
and to add… - Posted by David Krulac
Posted by David Krulac on February 12, 2002 at 18:44:46:
points are extra interest for the lender, and usually you get a lower interest rate by paying more points.
David Krulac