It’s not breaking news that interest rates are at an all time low, so it’s one of the best times to buy that dream home, don’t you agree? Let’s dive into various perspectives – or peal back the onion if you will – and let’s uncover some real estate and investing trends and hopefully educate you on what it’s really like out there. At the time of this post, the interest rates are terrific. You have 30-year mortgages averaging in the mid to high 2’s and qualifications are falling back to
Archives for December 2020
Private Money vs Hard Money Loans: Why You May Need Them
The investor world is full of terms, acronyms, and slangs, and they aren’t always easy to decipher. These terms are thrown around and can be misconstrued. Over time these words get bent and reshaped to mean multiple things – kind of like the game telephone we played as kids. A big example is the blanket term Hard Money Financing. Over the last few years, hard money has become the catchall term when there are any funds that bridge the gap from the purchase of a destressed property, rehabbing
Delayed Financing: How to Handle Investment Properties
As an Investor Specialist in the lending world, we are often asked “how can I purchase investment properties without utilizing Private/hard money loans?” Our short answer is “private money loans are the best way to purchase investment real estate.” In all seriousness, there is another route that can save you a lot of money and help you close more deals with lower closing costs, which is what is referred to as Delayed Financing. What is Delayed Financing? Delayed financing is a less common
Credit Score FAQ: Answers to Your Burning Questions
There are a lot of questions surrounding improving credit scores, and if you’re looking for a simple answer to how to increase your credit score, there isn’t one. There are so many factors involved with increasing your credit score. There are a few things to know about credit. First is that your credit score is a predictor of your future spending habits. Secondly credit is not a point system, but rather an algorithm meaning you do not get points for payments and paying off credit cards and
BPMI vs LPMI: Which is Better for You?
What Is The Difference Between Borrower Paid Private Mortgage Insurance (BPMI) and Lender Paid Private Mortgage Insurance (LPMI)? What is Private Mortgage Insurance? Private mortgage insurance (PMI) is a type of insurance that a borrower might be required to buy as a condition of a conventional mortgage loan. Most Approval Departments require PMI when a homebuyer makes a down payment of less than 20% of the home's purchase price or when you are refinancing a loan with less than 20%
Interest Rate vs APR: What’s the Difference and Why It Matters
What is an Interest Rate? An interest rate is the price of money, and a home mortgage interest rate is the price of money loaned against the security of a specific home. The interest rate is used to calculate the interest payment the borrower owes the lender.The rates quoted by lenders are annual rates. On most home mortgages, the interest payment is calculated monthly. Hence, divide the rate by 12 before calculating the payment.This is how your monthly Principal and Interest Payment is