How to Utilize Your Cash Investment in Your HomeHave 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 Thu. April / 25 / 2024 Only Half Of Black Seniors Approved For Home Repair Or Refinance Loans To Age In Place Block Club Chicago 10-year refinance rates: What to know about the current market CNN Underscored Should You Refinance Halfway Through Your Mortgage? Bankrate.com How to Refinance Your Mortgage NerdWallet Mortgage Interest Rates Today, April 24, 2024 | Rates Still Slated to Go Down This Year Business Insider Loan Modification Vs. Refinance Bankrate.com 30-Year Mortgage Refinance Rates Business Insider Mortgage Interest Rates Today, April 22, 2024 | The Still-Hot Economy is Keeping Rates High Business Insider 15-Year Mortgage Refinance Rates: Compare Current Rates Business Insider Mortgage Interest Rates Today, April 21, 2024 | Rates Remain Near 7% Business Insider How To Get The Best Refinance Rate Bankrate.com How To Choose The Right Kind Of Refinance For You Bankrate.com Will Interest Rates Go Down in May 2024? | Mortgage Rates Forecast The Mortgage Reports Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type Business Insider The best mortgage lenders for refinancing in April 2024 CNN Underscored MBA: Mortgage Applications Decreased in Weekly Survey Calculated Risk Mortgage Rates This Week NerdWallet Best Mortgage Refinance Lenders In 2024 Bankrate.com Should You Refinance Your Mortgage In 2024? Bankrate.com Current mortgage refinance rates CNN Underscored When to Consider Refinancing Your Mortgage Business Insider Best Refinance Lenders of April 2024: Refinance Your Mortgage The Motley Fool How To Refinance A Rental House Bankrate.com Mortgage Interest Rates Today, April 19, 2024 | High Rates Make for a Challenging Homebuying Season Business Insider Mortgage Rates Chart | Historical and Current Rate Trends The Mortgage Reports Best Mortgage Refinance Lenders of April 2024 Business Insider Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports Mortgage Interest Rates Today, April 20, 2024 | Rates Remain Elevated, but They Could Fall Later This Year Business Insider How Soon Can You Refinance a Mortgage? NerdWallet How To Refinance An Underwater Mortgage Bankrate.com Conventional Refinance Rates and Guidelines for 2024 The Mortgage Reports Refinancing a Home Equity Loan (2024 Guide) MarketWatch 30-year refinance rates: What to know CNN Underscored Mortgage Rate Predictions: Are 7% Rates Here to Stay in 2024? Norada Real Estate Investments Mortgage Rate Forecast February 2024 Bankrate.com Current 15-year refinance rates — and lenders that offer them CNN Underscored Mortgage Rate History: 1970s to 2023 Bankrate.com When should I refinance my mortgage? To determine if a refinance is the right move for you, you’ll need to know the ... The Wall Street Journal Pros and Cons of a Cash-Out Refinance Bankrate.com What Credit Score Do I Need To Refinance? Bankrate.com Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 Consumer Financial Protection Bureau
|