Answers - Real Estate

You've found your dream home and are now ready to start shopping for a mortgage. Several lenders have talked about points. You've heard that paying

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

points is the only way to get a low interest rate. But is increasing your initial costs worth getting a lower rate?

For most people, paying points

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

doesn't make sense. Points, also called discount points or origination fees, are each worth one percent of the loan amount. They are paid to the len

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

der at closing.

Paying points basically allows the borrower to buy down the interest rate.

Points became popular in the early 1980s when mortgage

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ates were in excess of 15%. Most people could not afford the monthly payments that come with such high interest rates. Lenders began offering discou

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

nted rates at a certain fee. Sellers often paid the points in order to sell their properties. This gave buyers affordable mortgages and owners were

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

able to sell their homes.

Times are different now. Interest rates are reasonable. There isn't a large need to pay a lot of money up front in order

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

o get a lower rate.

Let's look at the numbers. You have contracted to purchase a home for $240,000. You have the 20% down, which leaves you with a

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

mortgage of $192,000.

You find a 30-year fixed rate mortgage at 6.5% with two points. For closing, you will need to pay $3,840 ($192,000 x 2%) for

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

the points.

The lender can also offer you a rate of 7% with no points.

What do you choose? The lower rate or the lower closing?

At 6.5% you will

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ave a monthly principal and interest payment of $1,207. At 7% your payment increases to $1,270 each month. That's a difference of $63 per month. If

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

you are looking for a monthly payment reduction, it's not really a significant one.

It will take you 61 months ($3,840 divided by $63) to recoup yo

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ur points payment in the form of a lower payment. This is your payback period. But if you had the $3,840 still, it could be earning interest in the

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

bank. If it gets 3% interest in the bank, it would earn about $10 per month. If you pay points, this is interest lost, so subtract $10 from your $63

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

per month savings. Now divide $53 into $3,840, and your payback period increases to 72 months -- six years.

So you have to live in your home for at

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

least six years in order to take advantage of the savings that paying points gives you. Most people don't keep a mortgage for six years. Unless you

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

are absolutely sure you will live in the home for the time period necessary to recoup your points, you should probably invest your money instead of

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

putting towards points.

If you are looking at paying points in order to reduce your monthly housing payment, you may want to look at a less expensi

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ve property. Sixty dollars worth of savings isn't a lot if you have a tight budget. Chances are that if you have a tight budget to start with, findi

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ng extra money for closing would be difficult. And don't forget, taking out a side loan to get the money to pay points with is defeating the purpose

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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If you have an online business and you're trying to get traffic to your site, you want to advertise. Many people think this means that you have to advertise on the web or via some electronic medium. But advertising is advertising whether it's on the web, in an email, on a sign, on TV, at a trade show, or in a magazine. Your choice of advertising – online or offline – should not be driven by which media it is on. Rather, where you advertise should be driven by what audience you seek. The media that can you get you closest to the audience you need at the best price, is the media you should use. How can you tell the audience of a given media? Believe it or not, there's numbers available for everything. A few examples include the following:

This is one insurance, which is generally not taken too seriously by the people in UK.

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Answers - Does Paying Points on a Mortgage Make Sense?

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