Be very careful! Every situation is different. They are not always tax deductible, you should ask your CPA about what you can or cannot right off.
Some buyers pay points to buy down their rates. What you need to determine is if it's worth it or not.
Example, if your rate is 4% for a $500K loan w/ no points, and you pay 1 point= 1% is $5,000, how much lower will your rate be? 3.75 or 3.875???
That's the question to ask your mortage professional. The other question you need to ask yourself is how long you plan on keeping that property. Why pay an extra $5,000 upfront if the numbers don't work in your favor.
Best of luck.
Most agents have access to county records and can simply get information as to what has sold over what duration of time and for the same type of property in the same area. The MLS, which all agents should have access to, has the same information. Don't expect; however, to get the high end of any appraisal. This is a little different market. I provide this info on a regular basis free of charge and assume that most agents do too... more