The Jack Bosch Show 126: The Real Reason Interest Rates Don't Matter
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Nov 20, 2025 In this discussion, loan expert Aaron Chapman, known for his strategies on real estate financing, explains why investors often misplace their focus on interest rates. He highlights how amortization and appreciation maximize returns, revealing that paying off mortgages early might actually be detrimental. Aaron also shares insights on structuring investments to build long-term wealth, warns against refinancing pitfalls, and provides a compelling case for why now is a great time to invest in real estate. He wraps up with thoughts on the importance of relationships over riches.
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Don't Shop Loans By Rate Alone
- Do not obsess only over the lowest interest rate when structuring investment loans.
- Prioritize amortization, loan term and operational strategy over chasing tiny rate differences, says Aaron Chapman.
Leverage Creates Most Real-Estate Returns
- Leverage multiplies returns: amortization plus modest appreciation can turn a weak cash-flow deal into double-digit IRR.
- Aaron Chapman shows a $200k house with 20% down can average ~20.6% annual return from amortization plus 2.5% appreciation.
Inflation Erodes Your Real Mortgage Cost
- Fixed-rate mortgages transfer inflation risk onto the lender while tenants and appreciation offset your real cost.
- Over 30 years inflation makes the dollars you repay worth far less than the dollars you borrowed, improving real returns.
