Best Mortgage Rates in Decades

If you are getting ready to buy a home then you must start shopping for a lender and a mortgage with good rates.

MoneyWhat makes this a good idea is that right now, we happen to be enjoying some of the best mortgage rates we’ve seen in decades. But have you ever considered the difference it can make to the mortgage you end up with, to go through a mortgage broker or to go through a bank loan officer?

If you want to live cheap and still own a home it depends on what kind of credit you have. If your credit is bad it will be more challenging to get a loan, but not impossible.

Bad credit mortgages are ones that generally have a higher interest rate. This rate can add a lot of money to your overall loan without the benefit of getting a home with a higher value. Tread carefully when you are considering doing this. If you are already have money trouble, adding a high interest rate to a mortgage substantially ups the chances that you are going to lose your home to default or foreclosure.

Banks are pickier now, and any sub-prime loans have even bigger rates because they are considered to be so risky.

To find the lowest rates, your search needs to be relentless and it needs to deal with the way the system works. You need to hunt for the lowest interest rates and processing costs, the best points and the most favorable adjustment features. No attention needs to be paid to where the mortgage comes from or what kind of relationship you have with your current bank. It’s pretty certain that before your mortgage term is up, that the owner will have sold your mortgage to someone else – and you’ll find yourself dealing with a new party anyway.

Borrowing from hard money lenders though, isn’t easy. You first hurdle is actually finding one. These lenders only do business in their immediate neighborhood. They like to do business in the area they understand, and they like to see the property that they are dealing with. If you’re interested in such a loan, you need to find one of these lenders by calling mortgage brokers in your area who might know someone. Hard money is usually called “private money” in the business. You’ll see advertisements listed that use this language.

The closing costs on a mortgage may be 2 to 3% of the price of the home you are going for. And it’ll include all kinds of costs – an origination fee, appraisal and survey costs, transfer tax in attorney’s fees and so on.

Some lenders will no longer touch so-called sub-prime borrowers any longer anyway.

Make sure that you know what your closing costs are. And of course, on top of all this, your lending institution will want a separate credit report fee for pulling your report. And this isn’t included in those closing costs.

Typically, these loans are only obtainable through intermediaries or providers. They know people or companies that are interested in making hard money loans, and find a way to match them up with people who need them.

Make sure that you are prepared with name of the employee in the lending institution are dealing with in case you are not clear about something down the line.

More personal finance tips and info on mortgages.


Investing in commercial real estate

Have you been thinking about investing in commercial real estate?

The economy is growing at a sensible pace, not in an unreal frenzy as it was during the boom in the late 1990s. And despite offshoring woes, small entrepreneurs with fresh ideas are gaining steam, and they’re in need of space in which to work.

There are basically four types of commercial real estate: office, industrial, retail, and multi-unit residential properties that are purchased for investment. A growing trend is to combine some of these uses as in urban neighborhood in days of yore. People in suburban communities are getting tired of sprawl, and getting more interested in in-fill projects that build up in areas that are already developed as opposed to out into what has been rural land. So, if this trend gains more popularity, the lines between the different types of commercial real estate will become more blurred.

All types of commercial real estate are depending upon the health of the economy, both the county’s economy overall, and local economies. Some parts of a country can be depressed while others are booming, and sometimes an entire nation is in recession, and the market for all types of commercial real estate is not good.

If you’re interested in a particular type of transaction, it’s good to go to someone who specialized in the type you’re interested in. That broker or representative will have expertise gained from years of experience that will save you time and money in the long run. Some firms have a different division for each type of commercial transaction.

Your broker can tell you what is expected of you in each type of transaction. Some, such as apartment units, require constant upkeep. If you’re about to retire, investing in apartment buildings might not be the proper route for you. You might want to buy a share in a partnership that owns a string of office buildings.

What if you own land and want to building something?

You’ll need to find out exactly what your land is zoned for. Of course, it’s better to find that out before you purchase land, but sometimes you inherit land or have had undeveloped property for a long time and have only recently gotten sufficient resources to proceed with building something. Once you determine that your proposed project fits into the zoning requirements for your property, you’ll need to reach out to the surrounding community. Just because something is legal doesn’t mean it’s popular or even wise.

Getting input about the workability of a project before you invest your money and proceed will save a lot of grief down the line, especially if you’re proposing an innovative type of mixed-used building or complex.

If you know me – you realize I am partial to beach communities! I live at the beach and love it! why not invest in a beach house?