Risks of Flipping Houses?
Real Estate investing is a field in which millionaires are made and lost on an almost daily basis. Most of the wealthiest investors in the world will agree that real estate is by far one of the most profitable fields in which you could invest. It also carries some of the biggest risks when it comes to investing at the same time. Real estate investments are large investments for the most part so when you loose on an investment such as this the losses tend to be much greater than when you loose in other investment avenues.
When it comes to flipping houses there are several risks that you should consider before diving in headfirst. While most of the risks are not something you can anticipate or plan for they are risks that you should be aware of and carefully consider before investing in a risky venture such as a property flip.
1) Fickle market. The real estate market is a fickle business. There are countless things that can greatly impact the likelihood that your investment will sell quickly or sit on the market for months on end and most of them are beyond your control Tornadoes strike nearby, crime happens nearby, a big company goes out of business, or a new company moves into the neighborhood. For better or worse all of these things have a profound impact on the real estate values nearby.
Categories: Home buying, House Flipping Tags: Buying a home, Home, Home buying, House Flipping, mortgage loans, Real estate, real estate investing, real estate investment
Best Recommendations For Re-Financing?
Seek Recommendation When Re-Financing
Homeowners who are re-financing their home for the first time may need a great deal of advice to assist them during the process. While homeowner can certainly research the process of re-financing by themselves, this can be a cumbersome task which is difficult, if not impossible. While it might be possible for a homeowner to educate himself enough to make informed decisions, it is unreasonable to expect a homeowner to be up to date on the most current information in the re-financing industry. It would also not be reasonable for homeowners to learn enough to make a definite decision regarding re-financing. The homeowner may still require some direction regarding which options are best suited for the needs of the homeowner.
Fortunately there are two simple steps homeowners can take to tips the odds of obtaining the most favorable re-financing in their favor. These simple steps include consulting with friends and family members who have recently financed and turning to industry experts for assistance.
Consult Friends and Family when Re-Financing
Categories: Refinance Tags: declining market, Fixed rate mortgage, home mortgage, Mortgage, Mortgage loan, mortgage loans, Refinancing
Reverse Mortgage Pros and Cons – Is a Reverse Mortgage a Good Idea?
I talk to senior homeowners every day who have tons of questions about the efficacy of Reverse Mortgages. “Is this a good idea for me?” “Will I lose my home?” “Now the bank will be on the title of my property, not me, right?” These are legitimate questions. Many things in life have advantages and disadvantages. Reverse Mortgages are no different. So here are some things that may help you if you’re looking for information on Reverse Mortgages:
The PROS of Reverse Mortgages: (also called senior mortgages)
• Tax free income guaranteed by the Federal Government which continues as long as your home is your primary residence.
• You can change your plan at any time from a line of credit, cash out, monthly checks, or a combination (depending on what remains).
• The remaining Line of credit grows each month at half percent over the current interest rate.
• Unlike an equity loan there is no income, credit, or health qualification.
• A good option for seniors who wish to remain in familiar surroundings and in the same community where they’ve lived for years.
• Moving can cause emotional turmoil for many senior homeowners; memories were made in your “home sweet home”. Proximity to love ones and remaining in community may seem a better option.
• Reverse Mortgages can satisfy your existing mortgage or debts, though your debts are transferred to your Reverse Mortgage balance. (Your home does not have to be free and clear to qualify.)
• There are no out of pocket costs other than the appraisal fee and HUD counseling. Some HUD counseling organizations do not charge a fee depending on which HUD counseling agency you choose.
• You can remain in your home no matter what is owed the lender. You can never be forced out of your home as long as your Real Estate taxes and homeowner’s insurance are paid and as long as you maintain your home.
• You can refinance your Reverse Mortgage over and over again as long as there is equity in your home.
• Upon the sale of your property you can never owe more than the home is worth. However, if you choose to pay off your debt and live in your home or if your heirs decide to pay the debt upon your passing and retain the home, repayment of the full mortgage debt will be due.
• Your assets cannot be attached to repay the mortgage debt, and the debt does not pass to your heirs or your estate. The home stands for the debt.
• Reverse Mortgages have many safeguards: capped interest rates, a limitation on fees, HUD counseling, asset protection (non-recourse loan), no maturity date (cannot become due during a borrower‘s lifetime).
• Can be a financial tool to help heirs avoid some of the real estate tax.
• Your heirs may be able to claim the interest from your mortgage on their income taxes after your passing. (Be sure to consult your tax advisor.)
Now, those are the pros. Pretty easy, right? Sure, the dutiful old loan officer always gives you the good parts! But there are some things you need to know that some may feel are drawbacks to Reverse Mortgages. So here are the cons:
Categories: Mortgage Types Tags: home mortgage, mortgage financing, mortgage loans, mortgage refinance, mortgages, Reverse Mortgage