CW 581 - The ABC’s of Real Estate, Wrap Around Mortgage & Deep ARM Lesson

Even though Jason believes in a fixed rate, long-term, buy and hold mortgage strategy, he encourages people to be informed about the additional financing options available. This week he and Naresh take a deep dive into the adjustable-rate mortgage, breaking it down into easy to understand piece parts. They also discuss the wrap around mortgage, what the term negative rate means and give numerical examples to clearly explain each distinct type of calculation.

Early Bird pricing is available for the Orlando Property Tour & Creative Wealth Boot Camp

Key Takeaways:

[2:46] 5 Elements of adjustable-rate mortgages (ARM)

[4:19] 1. Start or Teaser rate

[5:10] 2. Index

[7:20] 3. Margin

[8:50] 4. Annual cap - 3 types

[13:38] Negative interest rates

[18:17] Negative amortization rate 

[19:05] Sophisticated investing techniques

[22:43] AITD - Wrap around mortgage

[24:23] Wrap around mortgage example

[28:48] Don’t forget about the Orlando Property tour & Creating Wealth Boot Camp

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