 |
How to Utilize Your Cash Investment in Your Home
Have you ever noticed how hard it can be to get to the equity
in your home?
Recently I had a client come to my office who had quite a bit
of equity in their home. I'm not talking about $50,000 or even
$200k, I'm talking about over $250k. I was asked to get 80% out
of their home so that they could re-invest the monies
elsewhere.
From an application stand point this person had no reason not
to qualify. They had great credit scores, tons of assets and the
loan-to-value on the home was nothing to be concerned about. The
only problem we came across was that they were business owners
and had taken a loss on their taxes the year before therefore we
could not show any income documentation.
Lenders have ways of protecting their interest through
limiting cash out and verifying their investments. Although my
client had everything with exception to the income documentation
we were limited to getting $250k out of their home. Locked into a
good rate, we moved forward and closed the deal that limited us
with getting the cash out.
We then went looking for a lender that would be more willing
to give us the cash out but knew it would be at a higher rate due
to the potential for risk. The rate for the rest of the money
turned out to be about 1% higher.
This got me thinking about utilizing my home as an
investment:
1. How much does the bank pay you when you pay down your loan,
yet they maintain their right to take your property until you
have paid your entire debt?
2. What happens when you find yourself in a difficult
situation and need to pay less than the monthly payment?
3. What happens when you need to get to the money you have
diligently worked so hard to pay down? You have to qualify, yet
you own the asset.
My recommendation is to maintain a way to get to your
investment. I am not so much recommending that you take out the
money as you at least set up a Line of Credit so that you can get
to the money should you need it.
Angela Talent, Your Mortgage Advisor! is a loan agent for
Allied Capital Loans in Folsom. You are free to distribute this
article as long as you include this resource box and make all
links active.
 MORE RESOURCES updated Fri. September / 03 / 2010
Google News
|
|
|
RELATED MORTGAGE AND REFINANCING ARTICLES:
Stated Income Mortgage
Loan - Get Approved Online
A stated income or no doc mortgage loan allows individuals
with difficult to document income to buy a home. With a
documented credit score and reasonably stated income, you
can qualify for a mortgage at a slightly higher rate.
Mortgage Information for
the First Time Homebuyer
Inflation in the United States is increasing rapidly and
home prices are soaring! There are millions of american
families that are unaware of the many mortgage programs
that are available for first time homebuyers. There are many
types of mortgage finance programs available to first time
homebuyers.
Renters Have Much to
Gain by Pursuing Home Ownership
Buying a home vs. renting is a big decision that takes
careful consideration, as most mortgage consultants will
agree.
Homeowners' insurance:
The mortgage connection
A home owners' insurance is the cover for the house against
natural calamities as well as liability. This covers the
house and its contents but also other personal possessions
which the house secures.
Home Equity Loans - A
Big Benefit Or A Big Mistake?
When the bills are piling up and there doesn't seem to be
any way out, a home equity loan can seem like the answer to
your prayers. Home equity loans can also be a great way to
jumpstart a business or investment portfolio.
Guide to Interest Only
Mortgages
Here is a useful guide to interest only mortgages. An
interest only mortgage is one where your regular payments
only go to pay off the interest on the money you borrow.
Thinking About
Re-mortgaging? Read These Tips First
More and more of use are signing up for limited time low
interest rate mortgages and then switching to a different
mortgage when the low interest period expires.It's a great
way to save money and can, potentially, save you thousands
in repayments.
Imagine Cutting Over
$8,000 Off Your Mortgage This Year
I once helped a customer cut over $700 off his monthly
mortgage payment. That's right, over $8,000 each year and
over $40,000 in just five years.
Mortgage Info You Can
Actually Understand!
This is a great time to Refinance Your Home or Buy a New
Home -- the Mortgage Rates are so low, these days! It's
always worth a shot to find out what the costs of switching
over to a new mortgage would be, to see if that's the right
move for you. Whether you are building your own house,
buying a new property, gathering funds to do a renovation
project, or Refinancing your current Mortgage at a much
Lower Rate, you'll be looking for Funding -- Money, Money
& More Money! Here are some commonly asked questions
regarding funding for a Mortgage or a Home Improvement
Loan.
Financing the Purchase
of Foreclosed Homes
Homes that have been foreclosed can be one of the most
economical ways to get into a nice home without having to
pay exorbitant costs. It's also a great way to get in on
the real estate investment game as a beginner.
Home Equity Loan - Good
Choice for Luxury Purchases?
Home equity loans or lines of credit have increased
dramatically in popularity in recent years. One of the
reasons is that interest rates are at or near historic
lows; borrowing money has rarely been more affordable.
Council Right to Buy
Mortgage - Helping Everyone Have a Home of
"We will help every Council Tenant to become Home Owners"
With these historic words Margaret Thatcher initiated an
equally historic concept of council right to buy scheme.
However, the groundwork for this scheme had been laid much
before in the 70s under the reigns of the labour
government.
Refinancing Your Home -
How and Why?
Chances are you may need a little extra money to get some
work done around the home or perhaps your current interest
rate is 7.5% and the prime interest rate is 6.
Internet & Mortgage
Calculations
"You've been approved!" The words you have always wanted to
hear when you filled out the home loan application. It
swirls through your mind the opportunities and memories you
will cherish in your new home.
Mortgage
Soup
Looking for home mortgage loans can get confusing with the
alphabet soup of mortgage loans programs available today.
Most of these programs are just variations of fixed rate
and adjustable rate mortgage loans.
Mortgage - What, Why,
When, and How?
What is a mortgage? Here's what The New Merriam - Webster
Dictionary definition is: "a transfer of rights to a piece
of property usu. as security for the payment of a loan or
debt that becomes void when the debt is paid.
Home Loans and Mortgages
- Tips to Avoid Foreclosure
Today's real estate market is a volatile one; prices are at
record levels and Interest rates are favorable, but
foreclosures are increasing. Wages haven't kept up with
home prices and some buyers who had to stretch to find a
way to obtain a mortgage in the first place are having
trouble making their payments.
Guide to
Remortgages
Here is a useful guide to remortgages. What is a
remortgage? A remortgage is when the terms of the original
mortgage are renegotiated, and usually means that the
borrower increases the amount that they are borrowing,
which is often possible due to a rise in the value of the
property.
How to Buy a Home
Without a Down Payment
Mortgage rates are rising and it's becoming more difficult
for a prospective buyer to save up for the necessary down
payment. Fortunately, there are ways around this hurdle.
Preventing Foreclosure
Proceedings and Understanding Your Options
Every year over 8 million homeowners are seeking help
preventing foreclosure proceedings. This is a stunning 30
year high.
|
used office furnishings-supplies-equipment-desks-cubicles-service-counters for
sale in Akron Ohio
Die cast model cars for sale in Akron Ohio
used cars for sale in Akron Ohio
unfurnished homes for
rent in Akron Ohio
| first second
ARM compare rates find the best rates current in your area lenders read reviews calculator adjustable rate loan home lenders brokers
quotes florida houston gmac washington interest only 2nd software debt consolidation
reverse senior equity texas maryland options lending bad credit
option one ameriquest chase first banks emc residential california miami dallas est branch marketing
home company commercial yahoo online bad credit low credit no credit |
|
