Home Loans -- The Hot New Product? The 30-year MortgageWritten by Charles Essmeier
In recent years, mortgage industry has introduced dozens of new types of loans. The needs of every borrower are different, so mortgage companies have tried to come up with an answer for every problem. They’ve introduced 40-year mortgages, promoted 15-year mortgages, and introduced wildest array of variable-rate mortgages imaginable. There are mortgages that have interest rates that adjust every few months, every few years, or just once. A recently popular product that thrives on East and West coasts is interest-only mortgage, which reduces payments by not requiring payment on loan’s principal for first few years of loan. The prospective homebuyer could have as many as one hundred possible types of loans to choose from when searching for a mortgage. Amidst this huge array of loan types, one type is growing in popularity faster than all rest, and it may surprise you. The fastest-growing type of mortgage in America right now is traditional 30-year, fixed-rate loan. Last year, only about 35% of all borrowers took out a 30 year, fixed-rate loan, but so far this year, rate has increased to nearly 50%.
This may seem odd, as most everyone has been opting for adjustable-rate mortgages for last few years. Adjustable rate mortgages tend to offer lower interest rates, and lower interest rates mean lower payments. These loans have been popular with buyers who move often, have lower incomes or buyers
| | Can a Sales Leaseback arrangement make investing in Orlando investment more safe and reliable Written by Lisa Carson
Sales Leaseback compared to traditional property investmentCan a Sales Leaseback arrangement make investing in Orlando investment properties more safe and reliable? Yes. Providing a guaranteed rental amount each month is safest and most reliable way to realize a return on your investment. In addition to freeing you from any financial worries regarding monthly income Sales Leaseback program also relieves you from headaches of marketing and administrative duties of operating a luxury resort. The sale and lease back transaction owes its initial roots to equipment leasing. In case of real estate, buyer purchases real estate from seller and seller leases it back from buyer for a specific amount of rent. (Lease Back) In this case, owner is lessor and management company is lessee. The Sale and Lease back offers following: Increase in rental amounts each year Typical Increases approximately 2% annually. Consistent amounts are paid each month to owner making it easier to calculate yield and manage property. A fixed amount is paid to owner each month. If real estate is approximately 2000 sq. ft, they would receive approximately $2000 The owner can stay at resort for FREE or a deeply discounted rates Offer discounted rates to family and friends who want to stay in their villa while on vacation.
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