May 09, 2025

Secrets of Buying Down Mortgage Interest Rates

Listen Later

1 hour 8 minutes

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

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.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Los Angeles real estate investor podcast? Book a free consultation to discuss.

...more

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Los Angeles Real Estate Investing & Real Estate Financial Planning™ Podcast

By James Orr

5

22 ratings

May 09, 2025

Secrets of Buying Down Mortgage Interest Rates

Listen Later

1 hour 8 minutes

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

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.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Los Angeles real estate investor podcast? Book a free consultation to discuss.

...more

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