Apartment Loan 101

Written by Cameron Brown


So you're interested in going into business as a property manager? Have you given any thought yet to you'll enter this potentially profitable market? Reality check-unless you've just inherited a large sum of money from a relative or are otherwise independently wealthy you're going to find someone to borrow from. This is where an apartment loan comes in.

Before you visitrepparttar local bank or other lending institution, it may be wise to ask yourself how long you plan to ownrepparttar 141813 apartment building or complex. Are you investing forrepparttar 141814 long-term? Answering this question will significantly influencerepparttar 141815 type apartment loan you should get.

If you are planning to ownrepparttar 141816 property for two years or less, most experts agree that an apartment loan with an adjustable rate mortgage (ARM) will be your best bet. Likerepparttar 141817 name suggests, an ARM is a loan will an interest rate that may change with time in accordance with various factors. ARM apartment loans usually offer a better initial interest rate than other loans to offsetrepparttar 141818 risk of future interest rate changes. An interest rate ceiling that may be reset annually also protectsrepparttar 141819 mortgage holder.

If you plan to stay inrepparttar 141820 property management business forrepparttar 141821 long-term, you may want to look at getting a fixed rate apartment loan. A fixed rate loan guaranteesrepparttar 141822 same interest rate overrepparttar 141823 life ofrepparttar 141824 mortgage.

Supposing interest rates are historically low atrepparttar 141825 time you securerepparttar 141826 apartment loan, this type of loan will lock you in atrepparttar 141827 best rate possible. Onrepparttar 141828 other hand however, if interest rates are historically high atrepparttar 141829 time ofrepparttar 141830 loan, you might be stuck paying interest at a higher rate than you would have with another type of apartment loan.

Another important question to answer before seeking an apartment loan source isrepparttar 141831 approximate cost ofrepparttar 141832 property. This may seem like a no-brainer when looking for an apartment loan, but too many first-time investors just takerepparttar 141833 interest rates they're given without question. Ifrepparttar 141834 apartment building you're interested in is selling for over $500,000, a direct lending source or investment company can usually give you a better interest rate than most banks or credit unions. However, if you're looking at a smaller apartment building selling for less than $500,000, you may want to check interest rates atrepparttar 141835 local bank.



Home Equity Line of Credit – Great Idea for Rainy Day Emergencies

Written by Charles Essmeier


Most Americans tend to live on a paycheck-to-paycheck basis, andrepparttar typical household has nearly $10,000 in credit card debt. Adding to that isrepparttar 141812 fact that Americans are saving money atrepparttar 141813 lowest rate in history. We spend what we earn, when we earn it, and there’s little or nothing available when a disaster or an emergency strikes. How canrepparttar 141814 average American make sure there will be money available for that “rainy day” emergency?

One possible solution would be to open a home equity line of credit. The equity in a home isrepparttar 141815 difference betweenrepparttar 141816 value ofrepparttar 141817 home inrepparttar 141818 market andrepparttar 141819 amount owed onrepparttar 141820 mortgage. Rising real estate prices acrossrepparttar 141821 country have left Americans with record amounts of home equity, and record numbers of homeowners are borrowing againstrepparttar 141822 equity in their home. There are two main types of home equity loans;repparttar 141823 traditional loan andrepparttar 141824 line of credit. The traditional loan lends a fixed amount of money that is repaid at a fixed interest rate over a fixed amount of time. This is ideal whenrepparttar 141825 money is borrowed for a specific purpose, such as a home-remodeling project.

The home equity line of

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