When acquiring investment real estate, you always want to get the best deal possible. That pretty much goes without saying and can be applied to any real estate acquisition. But what is the best mortgage rate? Is it the lowest rate possible?
Depending upon both your investment goals and available investments, unless you have vaults full of cash you may want to use someone else's money. The bank's. But what type of mortgage program should you get? That depends on a flip or hold strategy.
If you're going to flip the property, by acquiring the home, fixing it up and reselling for a profit, your goal is not necessarily the lowest rate. That's right. The lowest rate is not your guiding light when financing a flip. After all, you won't have the mortgage long enough for the rate to make much, if any, of an impact. You're going to acquire, remodel and sell. In fact, if you're a seasoned investor you likely have a few prospective buyers already in mind.
A short term strategy means not paying any discount points on your loan. In fact, the best mortgage for a flip is a no closing cost mortgage, a mortgage loan where there are no lender, legal or closing fees whatsoever. Yes, rates for no closing costs loans are higher but again you're not going to keep the mortgage loan enough for it to matter.
On the other hand, if you're going to acquire a property and intend to keep it long term, then getting the lowest mortgage rate should be your focus. You may want to buy the interest rate down by paying a point or two to your lender. One point will typically reduce an interest rate by one-quarter of one percent. You can do the math with your loan officer to determine บ้านมือสอง how many, if any, points should be paid on a mortgage loan.
Getting the best rate for investor properties doesn't mean finding the lowest rate on the planet... it depends upon what you intend to do with the property once purchased.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น