How much does Point cost?
To see how much Point might cost for your property, try out the Point Homeowner Calculator.
Processing and Appraisal Fees
If you accept an offer from Point, we deduct a processing fee of 3 to 5% (depending on the complexity of your financial situation, see more below) and an escrow fee, typically between $450 and $650, from the amount we invest in your property. For example, if we make an investment of $100,000 with a 3% processing fee and the escrow fee is $500, $3,500 would be deducted and you would receive $96,500. You will also cover the cost of an independent appraisal, typically between $500 - $700. Depending on your location, you may also be responsible for local taxes.
How does Point determine the processing fee?
Generally, a 3% processing fee will apply. However, some of our customers have complex financial pictures which require more of our staff resources to review. For these circumstances, we still offer our services, but must charge 5%. Some example situations where a higher transaction rate may apply are pending divorces, complex ownership structures (such as LLCs or non-standard trusts), and non-standard income sources. Standard income sources include W2 income, sole proprietor business income (as reported on Schedule C), and rental income (as reported on Schedule E). Additionally, the minimum processing fee is $1,200 which allows us to cover the costs of the transaction.
There are no monthly payments associated with Point.
When you sell your home, refinance, or when the term limit is reached (whichever is first), Point is repaid its original investment amount and a share of your home's appreciation. If the ending value is less than the original agreed value of the home, the amount you will pay Point may be less than the initial payment you receive now. To understand how much that might cost, you should model it out in the Point Homeowner Calculator.