With the plethora of mortgage lenders at an all-time high, and still expanding at an exponential rate, the borrower in search of a quote can easily obtain estimates with little effort. There are dangers to this reality that consumers must understand to avoid finding themselves stuck with a loan that is not exactly what they anticipated.
Basic Breakdown
In order to ensure accurate comparison from one quote to another, it is essential that the borrower have a basic understanding of the different aspects of a mortgage quote. This knowledge will allow him to filter out those quotes that are not in his best interest, and focus only on those contracts that meet his specific needs.
There are three main pieces to a mortgage quote that a potential borrower should use to evaluate a loan’s potential: monthly payment amount, interest rate, and loan type.
Monthly Payment
For most consumers, the ultimate factor in determining whether or not a loan has potential is the monthly payment. If the payment is within the confines of the allocate budget, then it should be placed aside for further evaluation. If the contract would require a monthly payment that is above what the borrower can handle, then there is no reason to waste time analyzing the other features of the loan.
Interest Rate
A loan’s interest rate should not be the main focus for the borrower’s decision. The interest rate is merely a numerical description of the lender’s profit with that particular contract. In essence, the interest rate is the lender’s fee for loaning such a large amount of money over a period of time.
Loan Type
The loan type is another extremely important factor to consider when comparing mortgage quotes. Since there are countless types of loans available, understanding exactly what he could expect will permit the borrower to make a more informed decision. Fixed mortgage loans are the easiest to understand because the provisions of the contract do not change. The borrower would pay the same amount every month for the entire duration of the contract, usually 15 or 30 years. Adjustable loans, called ARM’s, offer the borrower a fixed payment for a certain number of years, usually between 2 and 7. At the end of that period, the interest rate may adjust at regular intervals, thereby altering the monthly payments.
Reputable Online Mortgage Lenders - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Bad Credit Mortgage Tips- Read this article to learn some tips on getting approved for a mortgage loan with bad credit.
http://ezinearticles.com/?Evaluating-Your-New-Mortgage-Quote&id=576534
Friday, May 25, 2007
Refinancing Your Home - Typical Closing Costs
When refinancing an existing mortgage, homeowners must be prepared to pay new closing costs, just as they did when they initially purchased their property. There is little difference between the costs associated with a refinance loan and those of an initial purchase loan, so experienced borrowers should not be surprised.
Following are the major costs one can expect upon settlement of a refinance loan.
Title and Escrow Fees
The company responsible for providing title insurance and escrow services will require payment in full for their services upon closing of the loan. Title insurance protects both the borrower and the lender from any potential problems arising with the transition of property title from one party to another. Escrow fees are paid to the title company for their services as an independent mediator to ensure that all parties uphold their responsibilities, as well as for acting as the agent for payment to the various companies and individuals that will be paid at closing.
Lender Fees and Points
There are several flat fees charged by the lender for services during the application and underwriting stages of loan approval. Such fees include payment for document analysis, credit reporting, certifications, etc. Often these costs are referred to as “junk” fees, but it is extremely difficult to avoid paying them. Points on a loan are often used to reduce the overall interest rate charged to the borrower, and each point equates to 1% of the total loan amount. Borrowers who pay for points at closing are often doing so in exchange for a slight decrease in their interest rate over the life of the loan.
Appraisal Fees
Since a new property appraisal will be necessary in order to complete the underwriting process, the fee for such a service is usually paid at settlement. Although every appraiser has a different price for their work, the average home appraisal is within the range of $300-$400.
Taxes
Most lenders will insist that any property taxes due at the time of closing, or perhaps shortly thereafter, be paid in full prior to settlement. Since property taxes may become a legitimate lien against a home, lenders are unwilling to proceed without confirmation of such payments having been posted and processed.
Recommended Mortgage Refinance Lenders Online - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Poor Credit? Here are Some Tips for Getting a Mortgage Loan With Poor Credit- Read this article to learn some tips on getting approved for a poor credit mortgage loan.
http://ezinearticles.com/?Refinancing-Your-Home---Typical-Closing-Costs&id=576538
Following are the major costs one can expect upon settlement of a refinance loan.
Title and Escrow Fees
The company responsible for providing title insurance and escrow services will require payment in full for their services upon closing of the loan. Title insurance protects both the borrower and the lender from any potential problems arising with the transition of property title from one party to another. Escrow fees are paid to the title company for their services as an independent mediator to ensure that all parties uphold their responsibilities, as well as for acting as the agent for payment to the various companies and individuals that will be paid at closing.
Lender Fees and Points
There are several flat fees charged by the lender for services during the application and underwriting stages of loan approval. Such fees include payment for document analysis, credit reporting, certifications, etc. Often these costs are referred to as “junk” fees, but it is extremely difficult to avoid paying them. Points on a loan are often used to reduce the overall interest rate charged to the borrower, and each point equates to 1% of the total loan amount. Borrowers who pay for points at closing are often doing so in exchange for a slight decrease in their interest rate over the life of the loan.
Appraisal Fees
Since a new property appraisal will be necessary in order to complete the underwriting process, the fee for such a service is usually paid at settlement. Although every appraiser has a different price for their work, the average home appraisal is within the range of $300-$400.
Taxes
Most lenders will insist that any property taxes due at the time of closing, or perhaps shortly thereafter, be paid in full prior to settlement. Since property taxes may become a legitimate lien against a home, lenders are unwilling to proceed without confirmation of such payments having been posted and processed.
Recommended Mortgage Refinance Lenders Online - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Poor Credit? Here are Some Tips for Getting a Mortgage Loan With Poor Credit- Read this article to learn some tips on getting approved for a poor credit mortgage loan.
http://ezinearticles.com/?Refinancing-Your-Home---Typical-Closing-Costs&id=576538
Houston Freddie Mac Home Possible Neighborhood Solution Information
In some parts of the country a decent house in a good school district could requite $25,000 for a 10% down payment, plus payments of $2,500 per month. Our country has great wealth and many people can afford the cost of living in these areas. However for some key people that work in the community it is hard to afford to live there. Several plans have been designed to help select professions to own affordable homes. The largest by far are programs from Fannie Mae and Freddie Mac.
The Freddie Mac Home Possible Neighborhood Solution Mortgage is a specialized program to help key members of our community afford a home. Eligible homebuyers include teachers, healthcare workers, law enforcement workers, firefighters, and military personnel.
Benefits of the program include loan amounts up to 100%. This allows for a small or no down payment. The finance rate is very good and variable or fixed rates are available up to a 40-year term. The private mortgage insurance (PMI) requirements are low and this helps keep the payments low. Debt-to-income ratios are more flexible for this program which means you may be able to qualify for a larger loan. (The maximum debt to income limit is generally around 45% of your total household income. ) There is also an option for a subsidy buydown. A buydown reduces the interest rate, and the monthly payment, for up to three years. Customers can also use the Neighborhood Solution program to refinance out of a higher rate mortgage to get lower monthly payments.
Eligible properties include single family homes and condos. New construction homes qualify but manufactured homes do not. Customers must occupy the home as their primary residence. Credit should be fairly good but not necessarily perfect. Other conditions apply and you should consult with a local loan officer for full details about the program.
Freddie Mac has the mortgage for about 1 in 6 homes in the USA. However Fannie Mae is even larger and has programs that compete with Freddie. The Fannie "Community Solutions" program is very similar to the "Neighborhood Solution" plan. They are so similar that it is hard to say which is best but the "Community Solutions" program is better known and may be offered by more lenders. Other options are available and there is no single plan that is best in every case. This means it is advisable to research your options before selecting a mortgage.
Texas residents can get more information at our Houston Freddie Mac Neighborhood Solution site. Or call our Houston office at 281-537-7800.
Texas Capital Mortgage - Lowest Rates for Good and Bad Credit Mortgages! - http://www.Texas-Capital-Mortgage.com
- Also visit our insurance site at http://www.houston-renters-insurance.com
http://ezinearticles.com/?Houston-Freddie-Mac-Home-Possible-Neighborhood-Solution-Information&id=571671
The Freddie Mac Home Possible Neighborhood Solution Mortgage is a specialized program to help key members of our community afford a home. Eligible homebuyers include teachers, healthcare workers, law enforcement workers, firefighters, and military personnel.
Benefits of the program include loan amounts up to 100%. This allows for a small or no down payment. The finance rate is very good and variable or fixed rates are available up to a 40-year term. The private mortgage insurance (PMI) requirements are low and this helps keep the payments low. Debt-to-income ratios are more flexible for this program which means you may be able to qualify for a larger loan. (The maximum debt to income limit is generally around 45% of your total household income. ) There is also an option for a subsidy buydown. A buydown reduces the interest rate, and the monthly payment, for up to three years. Customers can also use the Neighborhood Solution program to refinance out of a higher rate mortgage to get lower monthly payments.
Eligible properties include single family homes and condos. New construction homes qualify but manufactured homes do not. Customers must occupy the home as their primary residence. Credit should be fairly good but not necessarily perfect. Other conditions apply and you should consult with a local loan officer for full details about the program.
Freddie Mac has the mortgage for about 1 in 6 homes in the USA. However Fannie Mae is even larger and has programs that compete with Freddie. The Fannie "Community Solutions" program is very similar to the "Neighborhood Solution" plan. They are so similar that it is hard to say which is best but the "Community Solutions" program is better known and may be offered by more lenders. Other options are available and there is no single plan that is best in every case. This means it is advisable to research your options before selecting a mortgage.
Texas residents can get more information at our Houston Freddie Mac Neighborhood Solution site. Or call our Houston office at 281-537-7800.
Texas Capital Mortgage - Lowest Rates for Good and Bad Credit Mortgages! - http://www.Texas-Capital-Mortgage.com
- Also visit our insurance site at http://www.houston-renters-insurance.com
http://ezinearticles.com/?Houston-Freddie-Mac-Home-Possible-Neighborhood-Solution-Information&id=571671
Thursday, May 24, 2007
How Can You Assume A Mortgage?
Finding a house with an assumable mortgage these days could prove to be a real find - but it is not very common. Typically only the FHA and the VA uses assumable mortgages, which basically means that another person can simply take over the house and payments. Here is some information that you need to know if you are thinking about taking over an assumable mortgage.
Getting a house with an assumable mortgage can make things easier for you. It means that you may be able to save considerable money, as well as have a speedier process involved. It can really be to your advantage, too, because the lower interest rates that are probably on it will enable you to save money. Not having closing costs and a few other expenses can also mean saving even more. You will, however, if the mortgage was obtained after 1989, need to be approved by either the FHA or VA before you can assume the mortgage.
The greatest amount of savings can be gained if you can simply pay cash for the house - the balance between the value of the mortgage and what the house is selling for. For instance, if the house is selling for $125,000, and the mortgage is worth $85,000, then the amount of cash you would need is $40,000.
In most cases, though, you would probably need to finance the balance that is needed, and this, of course, would be at the current market rate of interest. It is this financing that will slow the process down. For this amount, you would need to go through the whole gamut of getting a mortgage - including approval, finding a lender, closing costs on the amount borrowed, and more.
One matter about this that you need to consider, however, is the interest rate. Assumable mortgages are usually adjustable rate mortgages. This means that there is a fixed interest rate period of time, and after that, the interest rate becomes adjustable according to the market - either monthly, or yearly. If the current trend shows that this rate may rise to nearly unreachable payments for you before long, then you may do well to consider simply financing the whole thing. Having it set at a fixed rate is certainly safer if you see the rates increasing.
Assuming a mortgage does mean that you need to be approved by the lender of the mortgage. You will need to get a package from the lender that describes all the requirements that need to be met. While there will be some fees attached, it still will be cheaper than getting it financed. You need to be sure, however, that this really is the case. If interest rates start rising rapidly, you will need to consider financing the whole thing. To be sure, you should sit down and calculate both scenarios and see which one will be cheaper over the full length of the mortgage, or mortgages involved.
A seller of a house with an assumable mortgage should make sure that he or she has it in writing that are indeed freed from any liability of the mortgage. They also need to be sure to hold that document carefully just in case any questions should arise later if the new buyers default on payments.
Joe Kenny writes for the Loans Store, offering buy to let mortgage offers, or view the latest your mortgage and credit rating
Visit today: Mortgage offers from UK Loan Store
http://ezinearticles.com/?How-Can-You-Assume-A-Mortgage?&id=573066
Getting a house with an assumable mortgage can make things easier for you. It means that you may be able to save considerable money, as well as have a speedier process involved. It can really be to your advantage, too, because the lower interest rates that are probably on it will enable you to save money. Not having closing costs and a few other expenses can also mean saving even more. You will, however, if the mortgage was obtained after 1989, need to be approved by either the FHA or VA before you can assume the mortgage.
The greatest amount of savings can be gained if you can simply pay cash for the house - the balance between the value of the mortgage and what the house is selling for. For instance, if the house is selling for $125,000, and the mortgage is worth $85,000, then the amount of cash you would need is $40,000.
In most cases, though, you would probably need to finance the balance that is needed, and this, of course, would be at the current market rate of interest. It is this financing that will slow the process down. For this amount, you would need to go through the whole gamut of getting a mortgage - including approval, finding a lender, closing costs on the amount borrowed, and more.
One matter about this that you need to consider, however, is the interest rate. Assumable mortgages are usually adjustable rate mortgages. This means that there is a fixed interest rate period of time, and after that, the interest rate becomes adjustable according to the market - either monthly, or yearly. If the current trend shows that this rate may rise to nearly unreachable payments for you before long, then you may do well to consider simply financing the whole thing. Having it set at a fixed rate is certainly safer if you see the rates increasing.
Assuming a mortgage does mean that you need to be approved by the lender of the mortgage. You will need to get a package from the lender that describes all the requirements that need to be met. While there will be some fees attached, it still will be cheaper than getting it financed. You need to be sure, however, that this really is the case. If interest rates start rising rapidly, you will need to consider financing the whole thing. To be sure, you should sit down and calculate both scenarios and see which one will be cheaper over the full length of the mortgage, or mortgages involved.
A seller of a house with an assumable mortgage should make sure that he or she has it in writing that are indeed freed from any liability of the mortgage. They also need to be sure to hold that document carefully just in case any questions should arise later if the new buyers default on payments.
Joe Kenny writes for the Loans Store, offering buy to let mortgage offers, or view the latest your mortgage and credit rating
Visit today: Mortgage offers from UK Loan Store
http://ezinearticles.com/?How-Can-You-Assume-A-Mortgage?&id=573066
Why You Should Compare Interest Rates When Mortgage Refinancing
If you are a homeowner with good credit and are refinancing your home with a conventional mortgage, the interest rate you receive along with the fees you pay should be your primary consideration when choosing a lender. Many homeowners accept the first favorable loan offer they receive; however, you can save yourself a pile of cash by carefully comparison shopping and negotiating for the best mortgage rate. Here are several tips to help you find the perfect mortgage when refinancing your home loan.
Most homeowners comparison shopping for a mortgage loan simply end up with the best of the worst mortgage offers available to them. Because they accept a retail mortgage rate instead of the one they qualified, these homeowners overpay thousands of dollars every year. How do you refinance with a wholesale mortgage rate? Homeowners who understand Yield Spread Premium can negotiate with their loan originator to keep the mortgage rate they were approved.
What is Yield Spread Premium? Your mortgage company or broker marks up the interest rate you qualified to get a bonus from the wholesale lender behind your loan. They do this because the lender pays one percent of your loan amount for each quarter percent you agree to overpay. Throw in origination fees, discount points, and closing costs and it’s very easy to waste thousands of dollars when refinancing.
The good news is that you can pay less when refinancing your home loan. Doing your homework before comparison shopping will help you avoid the costly mistakes other homeowners make with their mortgage loans. You can learn more about refinancing your mortgage while avoiding pitfalls like Yield Spread Premium with a free mortgage video tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Mortgage Refinancing
http://ezinearticles.com/?Why-You-Should-Compare-Interest-Rates-When-Mortgage-Refinancing&id=574994
Most homeowners comparison shopping for a mortgage loan simply end up with the best of the worst mortgage offers available to them. Because they accept a retail mortgage rate instead of the one they qualified, these homeowners overpay thousands of dollars every year. How do you refinance with a wholesale mortgage rate? Homeowners who understand Yield Spread Premium can negotiate with their loan originator to keep the mortgage rate they were approved.
What is Yield Spread Premium? Your mortgage company or broker marks up the interest rate you qualified to get a bonus from the wholesale lender behind your loan. They do this because the lender pays one percent of your loan amount for each quarter percent you agree to overpay. Throw in origination fees, discount points, and closing costs and it’s very easy to waste thousands of dollars when refinancing.
The good news is that you can pay less when refinancing your home loan. Doing your homework before comparison shopping will help you avoid the costly mistakes other homeowners make with their mortgage loans. You can learn more about refinancing your mortgage while avoiding pitfalls like Yield Spread Premium with a free mortgage video tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Mortgage Refinancing
http://ezinearticles.com/?Why-You-Should-Compare-Interest-Rates-When-Mortgage-Refinancing&id=574994
Mortgage Refinancing Basics You Need to Know
Understanding the basics of the mortgage process is an excellent way to prepare when choosing the perfect mortgage. The process of obtaining a new mortgage is complicated; however, the basics are easy enough for even the most inexperienced homeowner. Here are several tips to get you on the right track when refinancing your mortgage.
There are three basics concepts you need to understand before refinancing your mortgage. When comparison shopping for a new loan, you’ll compare these items before choosing a lender.
I. Mortgage Term Length
Term is the length of time you have to repay the loan. Common mortgage term lengths include 15 or 30 year loans; however, there are now 40 and 50 year terms. The longer the term length you choose, the lower your monthly payment will be. The disadvantage of choosing a longer term length is that you will qualify for a higher mortgage rate and pay more to the lender over the lifetime of your loan.
II. Interest Rate
The interest rate you qualify determines how much you will pay for financing your home over the term of the mortgage loan. You have the choice of a fixed-rate or adjustable rate mortgage. The mortgage rate associated with fixed-rate loans stays constant of the lifetime of the mortgage. The interest rate for an adjustable-rate mortgage starts with a low introductory rate and generally increases over the life of the loan.
III. Fees and Other Expenses
Mortgage loans come with a variety of fees that must be paid before the process can be completed. Many of these charges come from third parties; you can shop around and compare fees and extras from a variety of lenders. When comparison shopping for your mortgage, it is important to negotiate with your lenders to avoid paying Yield Spread Premium with your mortgage interest rate. Also, make sure you are comparing “oranges to oranges” with the types of loans you compare.
You can learn more about refinancing your mortgage while avoiding costly mistakes like Yield Spread Premium with a free mortgage video tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Refinancing Mortgage
http://ezinearticles.com/?Mortgage-Refinancing-Basics-You-Need-to-Know&id=575429
There are three basics concepts you need to understand before refinancing your mortgage. When comparison shopping for a new loan, you’ll compare these items before choosing a lender.
I. Mortgage Term Length
Term is the length of time you have to repay the loan. Common mortgage term lengths include 15 or 30 year loans; however, there are now 40 and 50 year terms. The longer the term length you choose, the lower your monthly payment will be. The disadvantage of choosing a longer term length is that you will qualify for a higher mortgage rate and pay more to the lender over the lifetime of your loan.
II. Interest Rate
The interest rate you qualify determines how much you will pay for financing your home over the term of the mortgage loan. You have the choice of a fixed-rate or adjustable rate mortgage. The mortgage rate associated with fixed-rate loans stays constant of the lifetime of the mortgage. The interest rate for an adjustable-rate mortgage starts with a low introductory rate and generally increases over the life of the loan.
III. Fees and Other Expenses
Mortgage loans come with a variety of fees that must be paid before the process can be completed. Many of these charges come from third parties; you can shop around and compare fees and extras from a variety of lenders. When comparison shopping for your mortgage, it is important to negotiate with your lenders to avoid paying Yield Spread Premium with your mortgage interest rate. Also, make sure you are comparing “oranges to oranges” with the types of loans you compare.
You can learn more about refinancing your mortgage while avoiding costly mistakes like Yield Spread Premium with a free mortgage video tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Refinancing Mortgage
http://ezinearticles.com/?Mortgage-Refinancing-Basics-You-Need-to-Know&id=575429
Wednesday, May 23, 2007
Learn More about Refinancing
Long-term interest rates have been at near historic low levels for quite some time and thus, more people are looking for places to rent, making it easy to benefit from these investments. Your investment property loan may have terms that were very attractive when you first made the purchase, but due to changing market conditions may no longer be as favorable as they could be today. When interest rates fall, refinancing the mortgage on your investment property becomes very attractive because refinancing offers ways to leverage the equity in your property, lower your monthly payment and increase your cash flow.
Increase Your Cash Flow
You can drastically increase your cash flow by refinancing the mortgage on your investment property. If you've built up considerable equity in the property, you could turn that equity into cash by doing a cash-out refinance. If you refinance to a lower rate and/or increase the term of your loan, that could also lower your monthly mortgage payment and increase your cash flow even more. Using the Quicken Loans Rate and Payment Calculator can help you find out how much equity you have to borrow against and give you suggestions on what loan may work best for you.
Secure Advantage Loan - Low, adjustable rates and flexible payments each month
Upgrade Your Property and Raise the Rent
The home equity in your investment property can be used to fund improvements to your property and boost your cash flow. The great benefit of refinancing and making home improvements to your investment property is that it increases its market value, thereby allowing you to increase the amount of rent you charge to your tenants. With a Home Equity Line of Credit, you could:
* Build an addition to increase living space
* Upgrade the floors, doors, kitchen appliances and cabinetry
* Remodel the bathroom(s) with nicer fixtures
* Upgrade the furnace or central air
* Replace the roof
* Paint or re-side the house to enhance the exterior appearance
Buy An Additional Investment Property
You can use a home equity loan out of your primary residence or cash-out refinance out of your investment property to invest further in real estate. Equity in your property increases each year as the mortgage loan is paid down. Any increase in the value of the property will increase your equity in addition to the principal paid. To capitalize on that return, you can tap into that added equity, turn it into cash by refinancing and then apply it toward funding further investment properties. A Quicken Loans home loan expert can help you determine how to use a home equity loan to finance other properties.
Spend Your Money in Other Ways
The opportunity to use equity you have earned in your investment property is a major benefit of home ownership. The beauty is that you can refinance and convert the home equity into cash and then use it for whatever you choose. Making improvements to your property or purchasing additional investment properties are good examples of how refinancing can work to your advantage. The cash from your home equity can also be used to:
* Boost your retirement savings
* Invest in stocks or other markets
* Take the vacation of your dreams
* Buy a new car or boat
* Consolidate debt
* Help fund your children's college tuition
Home equity loans provide an easy source of cash and can be a valuable tool for those who invest in real estate. Using the equity in your investment property can help you increase your investment power and increase your long-term wealth. A Quicken Loans home loan expert can help you determine which refinancing options are best for you. Call us at 800-251-9080 to speak with home loan expert or fill out our short application online and a home loan expert will contact you.
http://www.quickenloans.com/refinance/articles/refinancing-investment-property.html
Increase Your Cash Flow
You can drastically increase your cash flow by refinancing the mortgage on your investment property. If you've built up considerable equity in the property, you could turn that equity into cash by doing a cash-out refinance. If you refinance to a lower rate and/or increase the term of your loan, that could also lower your monthly mortgage payment and increase your cash flow even more. Using the Quicken Loans Rate and Payment Calculator can help you find out how much equity you have to borrow against and give you suggestions on what loan may work best for you.
Secure Advantage Loan - Low, adjustable rates and flexible payments each month
Upgrade Your Property and Raise the Rent
The home equity in your investment property can be used to fund improvements to your property and boost your cash flow. The great benefit of refinancing and making home improvements to your investment property is that it increases its market value, thereby allowing you to increase the amount of rent you charge to your tenants. With a Home Equity Line of Credit, you could:
* Build an addition to increase living space
* Upgrade the floors, doors, kitchen appliances and cabinetry
* Remodel the bathroom(s) with nicer fixtures
* Upgrade the furnace or central air
* Replace the roof
* Paint or re-side the house to enhance the exterior appearance
Buy An Additional Investment Property
You can use a home equity loan out of your primary residence or cash-out refinance out of your investment property to invest further in real estate. Equity in your property increases each year as the mortgage loan is paid down. Any increase in the value of the property will increase your equity in addition to the principal paid. To capitalize on that return, you can tap into that added equity, turn it into cash by refinancing and then apply it toward funding further investment properties. A Quicken Loans home loan expert can help you determine how to use a home equity loan to finance other properties.
Spend Your Money in Other Ways
The opportunity to use equity you have earned in your investment property is a major benefit of home ownership. The beauty is that you can refinance and convert the home equity into cash and then use it for whatever you choose. Making improvements to your property or purchasing additional investment properties are good examples of how refinancing can work to your advantage. The cash from your home equity can also be used to:
* Boost your retirement savings
* Invest in stocks or other markets
* Take the vacation of your dreams
* Buy a new car or boat
* Consolidate debt
* Help fund your children's college tuition
Home equity loans provide an easy source of cash and can be a valuable tool for those who invest in real estate. Using the equity in your investment property can help you increase your investment power and increase your long-term wealth. A Quicken Loans home loan expert can help you determine which refinancing options are best for you. Call us at 800-251-9080 to speak with home loan expert or fill out our short application online and a home loan expert will contact you.
http://www.quickenloans.com/refinance/articles/refinancing-investment-property.html
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