What are the fees associated with a Point investment?
At origination, there are usually no out-of-pocket expenses for a homeowner. Deducted from a homeowner's investment are a 3% processing fee (subject to a $1,000 minimum) and other third party paid closing costs such as appraisal, escrow, and government fees. Certain promotional pricing may be subject to a 4% processing fee.
During the term of your agreement with Point, you may pay some service fees. You'll only be charged when these services are requested or required. Some common fees are in the table below. These prices reflect what you'll pay Point, but certain services may incur additional fees from your state or county. Costs are subject to change, and this isn't a comprehensive list of all possible charges. It's provided for informational purposes only. Point aims to always be transparent about every aspect of our process.
|Reconveyance Service Fee||Covers the costs of preparing documents to release Point's claim on the Property.||$45|
|Payoff Demand Statement|| This is charged when a payoff demand statement is prepared.
|Subordination Fee|| This is charged when a request is made to acknowledge in writing that Point's position is junior to the interest of another lender on the Property. For example, if you decide to refinance your mortgage without paying Point back.
|Changes to Title|| Covers costs incurred when changes are made to the title.
When a homeowner is added to or removed from the title of the Property, the homeowner agreements must be amended and signed again with a notary. These amendments sometimes have to be recorded.
|Full Appraisal|| At the end of the Option Term, at an owner option repurchase, or during certain sales transactions, an appraisal may be required to determine the fair market value of the Property. At the end of your term (or whenever you decide to buy Point out), we may need to order an appraisal. Some sales transactions may also require an appraisal to determine the fair market value of the home.
||$500 - $820|
|Administering Owner Events of Default|| These are any fees that result from administering the homeowner's default process.
||$500 - $3,500 (estimated)|
Current as of Dec 2019. Subject to change.