Another factor the borrower should consider are discounts points whether to pay or bypass. A discount point is a fee paid to the lender up-front to lower the interest rate on the loan. This may make sense to the borrower if the mortgage is going to be retained for a long period of time. To determine whether to pay for a reduced interest rate, the amount of money saved over a period of time from a reduced interest rate should be more than the cost of the discount fee paid.

What has changed is the economy, taking with it a he pool of available renters and would be tenants. As the economy falters, with jobs stalled and businesses closing the doors, investors are holding fire sales for empty buildings. Those that are still in business, have little need for loans and are keeping their capital under the mattress.

What about the ones who do have some money and want to continue to invest? Believe it or not, there are plenty of buyers out there, but they are squeamish. It’s been a while since I’ve had a buyer make an offer sight unseen and then worry about the financing after they were secure the deal was tied up. Somewhere they exist, but where?