Secrets of Buying Down Mortgage Interest Rates

09/05/2025 1h 8min Episodio 158
Secrets of Buying Down Mortgage Interest Rates

Listen "Secrets of Buying Down Mortgage Interest Rates"

Episode Synopsis


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

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/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Hialeah real estate investor podcast? Book a free consultation to discuss.