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Podcast: Rochester Real Estate Investing & Real Estate Financial Planning™ Podcast
Episode: Buying Down Mortgage Interest Rates for Real Estate Investors
Description: 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.
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