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Secrets of Buying Down Mortgage Interest Rates
Manage episode 481726668 series 3409597
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Learn the secrets of improving cash flow by buying down your mortgage interest rates on rental properties in Sugar Land.
This class is Module 34 of 46 in a series called Real Estate Investing Secrets.
Topics covered in this module include:
- How improving cash flow by buying down your mortgage interest can help you get to financial independence faster and with less risk
- One way of calculating the benefit of buying down your mortgage interest rate and a better, more sophisticated metric I’d probably use
- We’re focusing on buying down mortgage interest rates when buying a property, but similar math could be applied when doing cash out refinances, cash in refinances, rate and term refinances or recasting a mortgage
- The big picture: buying down mortgage rates and receiving credits for taking higher rates
- How long does the mortgage buy down last
- What’s a point and how to calculate them
- Can I use credits to fund my down payment
- What is par rate and how to get par rate when talking to lenders
- Your options if you find yourself with extra money after your minimum total cost to acquire a property (down payment, reserves, closing costs, rent ready costs, cumulative negative cash flow/deferred down payment, etc)
- Comparing putting more down versus buying down your mortgage interest rate
- A sample mortgage buy down table from a lender and how to read it
- Downloadable spreadsheet for analyzing mortgage buy downs
- How to use the spreadsheet
- What are vanity rates and how to deal with them
- Using the spreadsheet to take advantage of market inefficiencies
- Use the spreadsheet to automatically calculate simple and compound rates of return for various mortgage buy downs
- Comparing the return in dollars for putting more down or buying down mortgage interest rates
- Including improved equity growth in our comparisons
- When you should not buy down your mortgage
- How to determine if you should buy down your mortgage interest rate or pre-pay PMI instead
- Plus much more...
Check out the video and additional resources related to Secrets of Buying Down Mortgage Interest Rates.
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
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