Check out https://www.bankofamerica.com/home-loans/mortgage/budgeting-for-home/buying-mortgage-points-lower-rate.goThe banks want your points because they know the true meaning of the phrase "a dollar today is worth more than a dollar tomorrow"Using the BoA example:They use the concept of "break-even" from a "the bank wins perspective"If you can make 10% on your money by investing in real estate.The $2000 you saved $9000 over 30 years... turns into $39,674.80 over the same 30 years at 10% compounded interest.The $4000 that saved you $12,444 shows up in 30 years as $79,349.60.At even rates the first point in the above example is a good buy

Those transaction costs can put a big ding in long-term compounding.. even without the tax implications, on a 1031..

The nice thing here is that you can re-invest the interest income in the fund so you have compounding growth.  

What I determined from this chart is that if I had taken the value of the house in 2006, and put it into some type of stock or mutual fund where interest is compounded, then over a ten year period I'd only have averaged a 1.3% annualized gain.

Because of the nature of compounding.

@Wesley C. i started a tiny house posts if you are interested in following- was given some interesting info so far, and found a page with tiny house community. some really neat compounds, one even with a center fire pit.

Better than the 3% everyone is saying but still not stellar and definitely below the stock market average of something like 8%.But, If you make one more forecast that your property will match the average 3.6% multiple decade appreciation average all of a sudden your real estate asset is returning  over 25K in cash and appreciation on an investment or opportunity cost of $240K  This still does not include the fact that the appreciation is compounded free of tax while not tapped.  

This won't change the end result much at all as you're only changing the compounding interval, but it's a good thing to understand.Lastly, thanks for the pointers on the importance of obtaining servicing records even on a non-performing note.

the nice part about cash floe is that it gives you your funds to reinvest, compounding your rate of compound gains.

Hi,Does anyone has any advice where to put a down payment to collect interest while you are waiting for the right opportunity? I was thinking a money market account that is conservative. A CD is too long of a wait tim...