Winston-Salem Real Estate Investing & Real Estate Financial Planning™ Podcast

Learn the secrets of improving cash flow by buying down your mortgage interest rates on rental properties in Winston-Salem.

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.