The result is that the supply of money for the home mortgage market is lessened, as it competes for available funds. As the availability of money fluctuates, so do the points lenders require to place their money in the home mortgage area. Points on Conventional financing may be paid by either the buyer or the seller, and are therefore negotiable. Even though negotiable, in many instances buyers cannot afford financing a given house if they must also pay points. Therefore, sellers often see their best interests being served by agreeing to pay some or all of the points needed to make the sale.
Points are tax deductible for the borrower whether they are paid by the buyer or seller paid.
There are some limitations to the amount of seller contributions under all programs. For more information consult your Loan Officer. Closing Costs Closing costs vary slightly with various loan programs. Click HERE to review a breakdown of closing costs . Rate Locks Rates may be locked anywhere during this process, from time of application until three days prior to closing.