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Updated over 6 years ago,

User Stats

19
Posts
6
Votes
Tyler Silverman
Pro Member
  • Boulder, CO
6
Votes |
19
Posts

Option to pay for points or not with conventional financing

Tyler Silverman
Pro Member
  • Boulder, CO
Posted

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

  • Tyler Silverman
  • Loading replies...