This presents you with some great opportunities:
- Refinance to a lower rate! Call us to check your rate against the market. Lock in now before the inevitable FED rate hike.
- Pull cash out to renovate your home. Has a new kitchen or bathroom been on your to-do list? Leverage your equity now coupled with historically low rates.
- Pull cash out to buy an investment property. Is it time to become a real estate mogul?
You may have heard rumors about the federal government raising interest rates, and while this will eventually happen, last month the FED decided to hold steady. What this means to you is record low rates coupled with record high home values.
If you have purchased a home or refinanced recently, we may be able to lower your interest rate. Mortgages have pricing adjustments based on the size of your loan balance VS the value of your home, and with the increase in home values, your Loan to Value Ratio may have declined, resulting in a better interest rate opportunity. It takes us about five minutes to see if we can save you money.
Consequently, if you are thinking about purchasing, the time is now to lock in these low rates. Although prices may seem HIGH, did you know that a lower rate coupled with a higher home price may actually be less expensive than a cheaper price point with a higher rate? Now is a great time to do a side by side comparison to show you what a higher interest rate will cost you over 30 years. You’d be surprised to see that math.
Another area affected by higher real estate prices is the rental market. When a person feels “priced out”, the alternative to buying is renting. What this means for a real estate investor is a stable, positive cash flow investment, and unlike other type of accounts, investment properties are tangible and touchable items, that tend to have a great long term result. You can leverage the new equity in your home to add to / or start your real estate portfolio.
New equity also means access to cash. If you had some home improvement on your mind, it is almost certain that you have equity that can be turned into cash without big interest rate sacrifices. Adding a new kitchen, or making your home larger are all value adds that can be done with your new equity.
If you are curious to see what is available, give us a call at 800-239-1103 or email Mike@myCAHomeLoan.com
Thanks!
Michael DiVita and the DiVita Home Finance mortgage team
About Michael
Michael DiVita, President of DiVita Home Finance, Inc., is a 20-year veteran of the mortgage industry. He has been involved in thousands of loan transactions. Recognizing that the mortgage process needs overhauling, Michael has been investing in and leveraging technology to provide his clients a better mortgage experience. Please subscribe to his blog to receive weekly, relevant mortgage/real estate news
