Mortgage Rate Buydown for Turnkey Purchase?
I am about to purchase my 2nd turnkey property from Memphis Invest since 1st one has turned out great so far. As with first property, the plan is to buy and hold for the long term, and to create income streams that I can take advantage of many years in the future when the mortgages are paid off.
Mortgage amount with 25% down will be 119,925, and the regular mortgage rate I was quoted by my preferred lender is 4.875%. I also have the option to buy down the rate to 4% with 1.662 points. Thus, for $1,993 at the present, I can lower the monthly mortgage payment by $62. The breakeven would be about 2.66 years. Given that I plan to hold long term, sounds like this would save me a ton in interest over the life of the mortgage and would provide a huge return on the $1,993 investment.
Curious to hear thoughts from others. Any reason why I shouldn't take that buydown option and get the mortgage at 4%, assuming I have no issue paying the $1,993 at the present?