314: Rookie Reply: Mortgage Points, Seasoning Periods, and Cash-Out Refinancing 101

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 19 August 2023

⏱️ 50 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Are mortgage points really worth it? In many cases, they can save you money on a loan. But be careful; that lower rate might not be worth the cash you put up! It’s important to run the numbers before doing a mortgage buydown, and our trusted hosts are here to show you how! Welcome to this week’s Rookie Reply! In this episode, Ashley and Tony talk about mortgage points and when they make sense for real estate investors. They also discuss cash-out refinancing in depth—how much you can pull from a property, why banks enforce a “seasoning period,” and how to potentially get around it! Looking to go digital with your rentals? Our experts list the pros and cons of installing keyless entry pads. Finally, they provide the FREE tools you can use to get updated property information! If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover: Mortgage points and why you MUST do the math before a buydown Seasoning periods and how long you might need to wait before refinancing How much cash you’re able to pull in a cash-out refinance How to choose between short-term and long-term rental strategies Pros and cons of installing keyless entry pads for your rentals FREE tools you can use to get accurate information about a property And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Find Your Next Off-Market Deal, with Invelo Change Your Locks with Ease by Purchasing Core Inserts Follow Emma Kioko on Instagram Books Mentioned in This Episode Real Estate Partnerships by Ashley Kehr & Tony Robinson Check the full show notes here: https://www.biggerpockets.com/blog/rookie-314 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	This is Real Estate Rookie Episode 314.
0:05.4	Recently, we've seen a lot of banks do an interest rate lower your interest rate if you pay points.
0:13.2	So it's almost like a buy down for your interest rate.
0:17.0	So if you pay two points or three points, your interest rate has lowered and is now this.
0:23.5	And this is where you have to go and actually do the math and long term for the life of your loan.
0:29.0	What is actually the better deal?
0:31.5	My name is Ashley Care and I am here with my co-host, Tony Robinson.
0:36.0	And welcome to the Real Estate Rookie Podcast where every week, twice a week we bring you the inspiration, motivation and stories you need to hear to kick start your investing journey.
0:44.5	And we're back here in the Real Estate Robinson Studio with Ashley Care here in SoCal.
0:51.5	So Ashley down from the northern parts of Canada or wherever she's at.
0:58.0	To come hang out with us in Southern California.
1:01.0	Her first time really like doing L.A.
1:03.0	So we're going to be in L.A. all day tomorrow at the Spotify Studios.
1:05.5	So we've got to plan some cool things for you to do.
1:08.0	I wish you would come to our basketball season because I 100% would have taken you into a Laker game.
1:12.5	Oh my gosh, I'll definitely come back to go to that.
1:14.5	Have you ever been to...
1:15.5	I've never been to an NBA game.
1:17.0	I've done college march madness before, but never...
1:21.0	We've got to L.A. Laker games are a different breed of basketball.
1:26.0	Next time we've got to plan it out so you come during basketball.
1:28.0	I'm going to make sure our producers need me back out here.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.