Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago,
Option to pay for points or not with conventional financing
Hello everyone that reads this,
I'm reaching out to anyone that may have already done the math/thought exercise. My question is if buying points for a lower interest rate on a traditional-financing loan has any $ advantages for an investment property. If the cash flows are positive in either case (buying and not buying points), is the advantage of a lower interest rate really only observed after so many years of tenancy compared to not having bought points? What about buying points to make a deal cash-flow positive, jibberwash?
Approx 20% down payment for a property about $100k.
Thanks, BP community! :-D
Tyler