A good reason for choosing an interest only loan:
Most people will make a decision to trade up their current house based
on equity appreciation through sales prices going up. It is rare that
the equity appreciation is based on their amortization of their 30 year
fixed rate loan. That takes far longer. Therefore, if you are
considering trading up, why not save the monthly outlay of the principle
payments? On a $500,000 loan, the difference is over $600 per month!
Tuesday, March 11, 2014
Monday, March 3, 2014
Condo Loans After All Cash Purchase
Many investors or home buyers are paying all cash to buy a condo in
order to win multiple offer situations, foreclosures or short sales.
Placing a loan on the property after close of escrow may be a good way
to recoup funds for use elsewhere. If a loan to pull money out of the
property is done within 6 month of acquisition, then standard refinance
rules apply. This method avoids the more costly cash-out loans. Let's
talk about this strategy in detail before your time frame is up.
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