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Real Estate Tips
Financing Your Home >Who Pays the Points

When home buyers shop for financing, they must consider two important factors--the interest rate and the points. Each point is equal to one percent of the mortgage amount. If you are selling a home, the buyers may ask you to share the points with them.

The buyer usually pays the points. But if the offer is attractive and will give you the amount you want, paying one or more points might be a good idea. When a contract is presented, your real estate agent will go over the price and terms to help you calculate the net price you will receive. If the offer isn't strong enough or has risky contingencies, you might make a counter offer to increase your profit on the sale by eliminating the points from your selling costs or by increasing the price to help you absorb additional costs you will pay.

In some cases, buyers with limited cash may need some assistance from the sellers to make the transaction work. Your real estate agent will help you look at the total picture and the buyer's overall qualifications, so that you can make a decision based on the bottom line.

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Real Estate Trivia
What does the abbreviation PITI stand for?

Principal, Interest, Taxes and Insurance are the four major items included in a monthly mortgage payment.
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Madelaine Gerbaulet-Vanasse, REALTOR®, real estate agent and broker for Chicago, Bronzeville and Hyde Park, Illinois home listings, property and land for sale

Madelaine Gerbaulet-Vanasse
Metro Pro Realty

1613 E 55th Street
Chicago, IL 60615
Fax: 773-667-0000

MetroPro Realty is a full service brokeage that is equipped to help in buyer, renter or seller.

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