Buying Down Mortgage Interest Rates for Real Estate Investors

There are several ways to improve cash flow on your rental properties. One option is to put more money down to reduce the amount you borrow. In some cases, this can also improve your interest rate by lowering your overall loan-to-value. However, when comparing putting more money down to buying down the mortgage interest rate, it is usually better to buy down the interest rate for any reasonable holding period. This is true from both a return on investment and improved cash flow perspective.

Learn more about buying down your interest rate in this mini-class.

Check out the video from this class here:

Buying Down Mortgage Interest Rates for Real Estate Investors - Video

In this class, James discusses:

Buying down mortgage interest rates when buying a rental property
Improving cash flow by buying down your rate
You can choose your interest rate by how much you're willing to pay or receive as a credit toward closing costs
Rate changes for the life of the loan
What's a point and how do they work?
What's par rate and why it is critically important to seek clarity from your lender when they quote you a rate?
What can you do with extra money when buying a rental property?
Comparing more down payment to buying down your interest rate
Requesting a buy down table from your lender (and what they look like)
Plugging numbers into the buy down spreadsheet
Looking at the cost difference when buying down your rates to various levels
Selecting where to buy down to
Simple and compound return on investment calculations done for you
Putting more down improves cash flow in 3 important ways
Comparing more down payment to buying down interest rates (not just cash flow... cash flow and equity)
Temporary solution to buying down rate or pre-paying PMI
Download the Mortgage Buy Down Spreadsheet
Plus much more...

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Buying Down Mortgage Interest Rates for Real Estate Investors

Indianapolis Real Estate Investing & Real Estate Financial Planning™ Podcast

Buying Down Mortgage Interest Rates for Real Estate Investors