Blog — Page 681 of 888 — First Rate Financial Group

10

Nov

Home Mortgage Tips

3 Ways That You Can Leverage Mortgage Financing to Build a Real Estate Investment Portfolio

3 Ways That You Can Leverage Mortgage Financing to Build a Real Estate Investment Portfolio Real estate may be one of the most important things that you will ever invest in, but it can also be a useful means of increasing your financial well-being. If you’re getting into the real estate game and are wondering how you can make use of investing in homes to improve your net worth, here are three ways you can successfully work towards a real estate investment portfolio that will make you proud.

Home Equity Line of Credit Loan

Also known as HELOC, this is the type of loan where a homebuyer taps into the equity of their home while they are still paying off their mortgage. As the equity that has been paid into the home is available without the homebuyer having to apply for it, this allows those who invest in real estate to borrow against equity to renovate the property or pay for a deposit on another property.

Pick Properties That Will Appreciate

It goes without saying that most people want to invest in a property that will increase in value, so as an investor you need to be especially careful about what you invest in. Since you may have problems paying all your property fees if the value of one decreases, try and be aware of future market trends and neighborhood hotspots. This means diversifying the properties you invest in and including a buffer in your payment plan so that, even if the market takes a turn, you can still pay off your amount owing.

Investing In Under Market Value

There are few better ways to improve the financial feasibility of your investment portfolio than investing in a property that is under market value. Not only will you have an automatic gain with the purchase price, you will be able to invest that money into improvements in order to bump up the market price even more. While finding this type of property can be difficult for the newcomer, looking for neighborhoods with potential or properties that require little maintenance can be a good place to begin.

There are few better things to invest in than real estate, but it can be hard to know where to put your money in the beginning. Whether through a home loan or purchasing a property under market value, there are plenty of ways to bump up your net worth. If you’re currently considering an investment in real estate, contact your trusted mortgage professional for more information.

09

Nov

By support

Home Buyer Tips

Buying a Home This Autumn? 4 Unconventional Ways to Save up for Your Down Payment

Buying a Home This Autumn? 4 Unconventional Ways to Save up for Your Down Payment Autumn is a popular time for new home buyers to start looking for their first house or condo. But with that down payment looming, everybody could use a bit of help saving up to make that bulk payment a little less intimidating.

There are plenty of unconventional ways to save up that may seem small, but will quickly add up and put a dent into that down payment.

Create A High Interest Savings Account

Talk to the bank about creating a secondary savings account with a higher interest rate. These super savings accounts usually come with the caveat that no money can be removed for a designated period of time. Using this account for the down payment works in everybody’s favor because it guarantees those extra dollars cannot be used for any other purpose.

Discard One Guilty Pleasure

Enjoy Starbucks coffee? Grab a pint every happy hour? Choose one vice and put the amount that would be spent on it into a jar. Most people will be surprised on how much money they spend each month on one guilty pleasure that can easily be cut out of their life. Every perk that’s cut will increase the amount by a decent margin.

Put Away Any Bonus Money

Holiday bonuses from work, tax refunds, birthday or Christmas presents, income from side gigs, any and all extra dollars that come in from any source outside of the main paycheck should be considered ‘down payment dollars.’ Sure it’s tempting to use that nice bonus or tax refund on a weekend trip or a night out, but all extra income should be saved away for that initial down payment.

Bring On The Roommates

People who already own a home and are looking to relocate can take this unconventional approach. Decent housing is hard to find so anybody with an extra room can rent it out and put that money towards the new house. Having a roommate can be a pain, but it’s for a limited time and can add up quickly.

While saving for a down payment can be stressful, you don’t have to go through the process alone. Your trusted mortgage professional will be able to guide you and provide some helpful tips for how to make that down payment without breaking the bank. These men and women have seen countless couples go through the same thing and their experience can make a world of difference.

08

Nov

By support

Home Mortgage Tips

Reverse Mortgages 101: How This Unique Financial Product Can Make Your Life Easier

Reverse Mortgages 101: How This Unique Financial Product Can Make Your Life Easier If you’ve been in your home for a while and have considered other loan options, you may have heard the term reverse mortgage without being aware of how this product can benefit you. While this type of mortgage works for those who have a high amount of equity in their home, here are the details on reverse mortgages and how this product may work for you.

What’s A Reverse Mortgage?

The reverse mortgage was created in 2009 as the Home Equity Conversion Mortgage for Purchase (HECM) and is something that can be used by those who are older than 62. As this type of mortgage does not require the homeowner to pay monthly mortgage payments, it enables those who use it to repay their loan after they move out or pass on. If the cost of maintaining your home is manageable and you don’t plan on moving, this can be a useful option.

The Requirements For Reverse Mortgages

Beyond the age requirement, those who want to utilize this product need to own their current property or have a high amount of equity in it. They must have the ability to pay any insurance and property tax on the home, and they must comply with the standards that are set by the Federal House Administration (FHA). This means that applicants may require documentation like bank statements to confirm their financial security, or even pay stubs if they are still receiving a monthly income.

The Pros And Cons

A reverse mortgage can be an option for those who don’t want to make a regular monthly payment on their home and would like to turn it into a source of additional funds while still owning it. While this can be an option to for those who want to stabilize their monthly expenditures, it’s also important to be aware that there can be higher costs associated with a reverse mortgage. In addition to a higher interest rate, reverse mortgages incur a higher overall interest payment since monthly payments are deferred until the loan is paid in full.

There are many types of mortgage products out there on the market, but you may not be aware that a reverse mortgage or the Home Equity Conversion Mortgage for Purchase (HECM) can be a useful option for many seniors. If you are wondering if this option is right for you, contact your trusted mortgage professional for more information.