Monthly Archives: April 2017

Home Loan Refinance – Making Your Biggest Investment

Taking advantage

If you have been paying off your home on a regular basis you are building an investment in your future. You have heard it from the time you were younger. Buy a home and invest in your future. After a while you are perhaps wondering when that future will come to pass. When can you take advantage of all your hard work and diligence? Most people think retirement is the time to take advantage. If they choose retirement time to take advantage this is fine, but what about now? A home loan refinance program may be just right for you. Take the savings from a home loan refinance and pay off outstanding debt or make the repairs to your home that will ultimately increase its value.

Is the timing right for you?

New money has been pumped into the system, by the government, to make home loan refinance more accessible. If you’re considering some new additions to your property, a long needed vacation or help paying for a child’s education, this may be for you. Pay less and use the saved money more productively

Expand your holdings

Paying into your home means that that money is just sitting there working for the bank. Why should they be able to take advantage of the money when you can? A home loan refinance program could let you expand your investment portfolio with saved income. They can let you invest in other properties to diversify your holdings. A property investment in your primary residence was a smart move. If one piece of property was wise, two may be better. Make the first investment work even harder with a home loan refinance program by buying a second property.

A buyers market

In many regions, the real estate market has finally topped out. Prices are actually beginning to come down. Everybody knew it had to happen at some point. That’s just the way the economy works, in cycles. Being ready to pounce at the right time is critical to finding just the right second property for your needs. This type of program will let you make your move when you are ready. A home loan refinance program will enable you to act fast if you need to.

The market is in a state of flux. Taking your bargain shot could be here now. Don’t let that one opportunity slip past and consider your finance options ahead of time.

Cash Out Refinance Mortgage Loan Can Help Homeowners in Many Ways

Cash out refinance mortgage loans may be the best way for a homeowner to get cash they need or get cash out BEFORE they actually need it. There are now cash out loan programs available that allow 95% L.T.V.. A 95% cash out loan enables a homeowner to use up to 95% of the home’s value to determine the loan amount. For instance, a homeowner who owns a home with an appraised value of $200,000 may be approved for a cash out mortgage loan for $190,000.00. $200,000 X .95 = $190,000.

In obtaining a cash out loan, a homeowner can use the cash for anything they choose however if the homeowner wants to pay off debts or use the money for improvements on their property, they should tell the mortgage representative who is working on their loan that the cash will be used for these purposes. In both cases, this may help the approval process. Paying off debt with some of the loan proceeds may reduce the homeowner’s debt to income ratio and help them to qualify for the cash out refinance. A property improvement may increase the value of the property which may also help an approval along.

Some homeowners choose to use their cash out loan to invest in strong investments. A homeowner investing their cash out proceeds in this manner could better themselves financially and benefit their family for many years to come. A homeowner can take a cash out refinance and apply it to a 401K account or I.R.A. Some homeowner’s have been successful by investing in individual stocks. With today’s historically low interest rates available on cash out mortgages, it is much easier to come out ahead with a cash out refinance for investment purposes. Another popular choice for a refinance cash out loan is to use the money for a business start up. The reason for this is simple. If a homeowner were to apply for a straight business loan without the loan being a mortgage loan, there is much red tape to go through. For instance, a complex detailed business plan would be necessary as part of the approval process. The borrower’s ownership experience, management experience or years in the profession may also be heavily scrutinized by the underwriters when applying for a business loan. Contrasting the higher interest rates of a business loan with the low interest rates of a cash out mortgage loan, there may be considerable savings with a cash out mortgage loan. A longer term is also available with cash out mortgage loans and this will reduce the monthly payments as well.