By building a seller credit into your offer, the seller can pay for ALL of your closing costs and prepaids, and you will get your earnest money back, plus any property tax proration credit as applicable.

So for example, if you prepaid the loan by $50k it just deducts from the back end. 

Here is my interpretation: You cannot deduct the full amount in one year. 75% of the points (other 3 units) if you use unit count = $9168 divided by 30 years your annual deduction is $305.60    Points are prepaid interest -treated as interest on Schedule E.

Current rate is 3.My normal closing cost (excluding prepaids on insurance & property tax) for a conventional 30yr mortgage for similar SFR has been $3800 - $4100 range.

run out and get a pre-paid credit card and/or a "normal" check card ASAP.  

I also negotiated 3 months pre paid rent. 

Account Closed Property taxes paid to the taxing authority are deductible in the year paid, so prepaid 2018 property taxes would be deductible in 2017. 

.- Not saying it is an industry standard to charge 16% in closing costs but it once you add up all of your prepaids, other costs, and unfinanced fees its not completely unheard of.In the end, yes - always get a second opinion.

For example, there is a large national retail lender that advertises heavily (and I am sure will have a super bowl ad later today) who regularly  will show unsophisticated buyers a great rate but then when the LE comes there are 2-3 points (which is just pre-paid interest) and high fees.

All figures are generated for illustration purposes only and do not reflect actual figures of any of our current/past transactions.Questions:1-If our debt package requires 3 months of prepaid P&I ($15,000), should we increase our Sources & Uses schedule to account for this figure, or do we anticipate the property to perform & simply borrow funds short-term from ourselves or 3rd party credit until operating incomes can pay back the short-term loan?