Rental Property - Refinance, Don't SellWritten by Steve Gillman
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A bank will probably loan you 70% of value, or $280,000. After paying off first mortgage, you are left with $160,000. With todays lower interest rates, your payment on new mortgage will be about same. At most you might lose $50/month in cash flow.
An even better scenario: Use $40,000 for high-return upgrades to property, such as carports or laundry rooms, and then raise rents. You could have $120,000 left over to spend any way you want, AND have higher cash flow. Does that sound better than selling your retirement plan? Don't sell. Refinance that rental property!
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
The Debt Test: are you making out a mountain out of your mortgage?Written by Rachel Lane
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The mortgage market is also watched very closely by consumer research website, moneynet. In addition to tracking market behaviour, property values and homeowner incomes, moneynet have endeavoured to become increasingly proactive about educating their visitors, so they fully understand complexity of relevant financial products. In addition to their mortgage comparison service and mortgage protection options, moneynet published a comprehensive mortgage guide earlier this year, as part of its series of consumer product guides. Moneynet isn’t only site to offer enhanced information services; Which? also offers a detailed mortgage guide and mortgage search tool powered by Moneyfacts. Both “Switch with Which?” and moneynet take consumer through types of deal available, detailing different interest rate structures including fixed rates, capped rates, discounted rates, stepped rates and standard variable rates.
The CML state that there is much evidence to show that first-time buyers appreciate this information, including “debt test”, more so than older households. This is perhaps due to fact that many first-time buyers have to borrow much more for their initial property, due to high prices, and that they have generated more personal debt than their parents’ generation. Whilst personal debt remains a major concern for finance industry, government and public, financial stability remains possible with education.
Moneynet Mortgage Guide
Which? Mortgage Guide
Council Mortgage Lenders