If you're using financing to purchase a property, your lender may offer the option to pay "points" to reduce the interest rate of the loan.

Alternatively, your lender may pay you "points" in the form of a credit when you accept a higher interest rate.

You can enter loan points for both of these scenarios on the Purchase or Refinance Costs sections of the property's Purchase Worksheet.

 

Step 1: Select "Itemize" for the Purchase or Refinance Costs Category

Open the Purchase Worksheet page, and click the Itemize button next to the Purchase Costs (or Refinance Costs) input:

Purchase costs itemize button

Then turn on the Itemize Purchase Costs toggle:

Purchase costs itemize toggle

 

Step 2: Add an Item With the Loan Point Amount

Click the Add button at the top right of the list:

Add purchase cost button

Then enter the information about the loan point amount. Loan points are typically calculated as a percentage of the loan, so you can select Percent > Percent of Loan for the type of calculation.

You can enter both a positive amount (when you're paying points to the lender) or a negative amount (when the lender is giving you a credit). You can also turn on the Wrap Into Loan toggle if the loan points will be added to your loan amount:

Loan points item worksheet

After clicking the Save button, the new loan points item will be added to the list along with the other purchase costs:

Loan points item example

 

Note: The above screenshots were taken from our online app, but the same features can be found in our iOS and Android apps as well.

Did this answer your question?