Affordability means different things to different investment condo/home buyers. Relax, there are affordable, flexible choices out there. Many lenders now offer mortgages tailored to meet an array of personal needs and financial circumstances.
Many lenders now offer adjustable rate mortgages (ARMs) that are much more innovative than in years past. What are the typical benefits of ARMs?
With investment property prices rising, the lower start rates of the ARMs offer may heip buyers qualify for larger loan amounts, enabling them to purchase more property than they thought they could. Typically, the inital monthly payment for an ARM is lower than a fixed-rate mortgage, so borrowers qualify for a larger loan amount than the would with a fixed-rate loan.
Borrowers who desire the predictable payments of a fixed-rate loan but want the lower start rates typical of ARMs can have the best of both worlds with a hybrid ARM. These loans have initial fixed-rate periods (three, five, seven or 10 years), then convert to an adjustable rate for the remaining life of the loan.
The interest-only loan is another popular choice. Available on many types of loans, for the first 10 or 15 years of the loan, qualified borrowers make interest-only payments, but can also make principal reduction payments during this period if the wish. After the interest-only period, the unpaid ballance is fully amortized over the remaining term of the loan. This option can serve as an affordability tool, allowing lower monthly payments during the interest-only period.
The average investment property buyer spends several thousand dollars on new furniture, applicances, window treatments, and the list goes one. It is now possible for qualified borrowers to take our a home equity line of credit (HELOC) at the time the property is purchased (in some cases). This can be used for
expenses like these.
Major lenders are eager to help you purchase an investment property. Your local banker is a good place to start. I can also recommend a number of local mortgage bankers that are eager to help you buy your investment property.
The Pre-qualification process, which makes things very much easier, you will find out:
- Exactly how much home or land you can afford.
- How much cash you will need for the down payment.
- The minimum down payment, and advantages of higher down payments.
- What the bank feels you can afford for a monthly payment.
I help buyers pre-qualify for mortgages every day. Simply fill out the form below to get started.
Remember: I will respect your privacy! I know this is your personal information, and I will not distribute it to anyone, other than to my preferred mortgage broker. This service is also provided free of charge, without any obligation on your part. It is part of my job as a top Breckenridge, Frisco, Dillon and Summit County real estate agent to offer services such as these.
Once you fill out the form, I will quickly process your information and get right back to you!
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