RSS…use cash-out refi’s as a vehicle to take equity out of properties they own for re-investment. It is common to rotate equity reduction from properties on a cycle and is an excellent vehicle for re-investment and therefore expansion of leveraged appreciation. One must remember the 4 reasons for owning commercial property and use the proper strategies for expanding your overall income.
Archive for January, 2008
Frequently real estate investors…
January 31st, 2008 by admin | No Comments | Filed in UncategorizedWhen working with your mortgage…
January 31st, 2008 by admin | No Comments | Filed in Uncategorized…professional you should have them review your credit file and give you a copy so you can identify any mistakes. Sometimes people will have a small collection amount they are not even aware of and which should not be there. This will affect your FICO score. Correcting these mistakes can improve your FICO score by 20 or 30 points (or more) in a short time.
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ficoTags: fico
If you have a high FICO…
January 31st, 2008 by admin | No Comments | Filed in Uncategorized…score the lender will offer you a lower rate because they view you as a low risk of default. Paying your bills on time and lowering your credit balances will improve your FICO score. Check your credit report to ensure that it is accurate.
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balance, credit report, ficoTags: balance, credit report, fico
Sometimes, cash out from a…
January 31st, 2008 by admin | No Comments | Filed in UncategorizedCredit scores and other…
January 31st, 2008 by admin | No Comments | Filed in credit…information contained in the credit report are the most important factor out of the three major criteria banks use to underwrite a mortgage loan application. The other two criteria are repayment capability and borrower investment in the subject property. It is much easier for a home buyer with good FICO scores to get a no income disclosure or no down payment mortgage than for a borrower with excellent income and asset to get a no credit loan.
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application, credit score, credit scores, fico, loan, paymentTags: application, credit score, credit scores, fico, loan, payment
When consolidating high interest…
January 31st, 2008 by admin | No Comments | Filed in Uncategorized…revolving debt like credit cards, it’s very possible to see enormous monthly savings in your monthly expenses.
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credit card, debt, interestTags: credit card, debt, interest
If you plan on closing any…
January 30th, 2008 by admin | No Comments | Filed in Uncategorized…credit cards, wait until your loan has closed, as the number of tradelines affects your FICO.
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credit card, fico, loanTags: credit card, fico, loan
Proper planning and establishing a long…
January 30th, 2008 by admin | No Comments | Filed in Uncategorized…term relationship with a broker can make your goals and dreams come true. A well planned cash out refinance can make paying for college, for example, a stress free time allowing you to enjoy the thrill of watching your children grow and learn!
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refinanceTags: refinance
A common misconception about credit…
January 29th, 2008 by admin | No Comments | Filed in Uncategorized…scoring is that multiple mortgage inquiries will negatively impact your credit score. Inquiries within the same industry such as the mortgage industry within a 30 day period are counted as 1 credit inquiry. Factors such as recent delinquencies, credit card balances close to their limits, or a limited credit history have much more impact on credit scoring. The major credit agencies have this information posted on their websites.
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balance, credit agencies, credit card, credit history, credit score, credit scoring, mortgage, refinanceTags: balance, credit agencies, credit card, credit history, credit score, credit scoring, mortgage, refinance
It is very important…
January 29th, 2008 by admin | No Comments | Filed in UncategorizedA refinance transaction in which…
January 29th, 2008 by admin | No Comments | Filed in UncategorizedWhat does your FICO…
January 28th, 2008 by admin | No Comments | Filed in Uncategorized…score mean? Well here is the answer. Your FICO is an evaluation of the risk that you will go sixty days late on a credit obligation within the next twenty four months. Those with a score above 700 have a very slight chance of this happening while those with scores below 500 have a fairly good chance of going sixty days late within the next two years. The scoring parameters are based on extensive research of payment patterns of tens of thousands of credit consumers over the past ten to twenty years. As with any system that evaluates a potential risk, it is not 100% accurate but is correct more often than not.
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fico, paymentOne thing most people don’t…
January 28th, 2008 by admin | No Comments | Filed in Uncategorized…know is that the credit scores available from consumer sites such as freecreditreport.com, myfico, etc. are not accurate or valid when it comes to qualifying for a loan. In fact, the scores are compiled using a variety of different scales and methodologies, and can be very misleading. In fact, most of them are not FICO scores at all. When it comes to mortgages, the only score that matters is the middle score which is pulled by your mortgage company (not the highest or the lowest, but the middle of three or the lowest of two bureaus) If you are pulling your own credit, the only official federal government sanctioned website is annualcreditreport.com , which is the only place you can pull all three reports for free (once a year) without signing up for things unexpectedly or unknowingly divulging private information to prospective creditors.
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credit score, credit scores, fico, loan, mortgage, refinanceTags: credit score, credit scores, fico, loan, mortgage, refinance
Your home is one of…
January 28th, 2008 by admin | No Comments | Filed in Uncategorized…the quickest growing investments. You can cash out in some cases up to a 106% of the house value depending on several different factors. A lot of borrowers use the cash out for home improvements, pay off high interest credit cards or personal loans, pay for school, personal use, etc.
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credit card, interest, loanTags: credit card, interest, loan
Your credit score is one…
January 28th, 2008 by admin | No Comments | Filed in Uncategorized…of the most important factors that determine the interest rate you will be approved for. In many cases, it will be the deciding factor whether to be approved for the loan or not.
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credit score, interest, loanTags: credit score, interest, loan
Most borrowers expect their payment…
January 28th, 2008 by admin | No Comments | Filed in UncategorizedMost loan programs call for…
January 27th, 2008 by admin | No Comments | Filed in Uncategorized…the borrower to have 2 to 6 months of reserves after all closing and settlement costs of a refinance. This means if your total monthly payment (PITI) was $2500, you would be required to have verifiable and often seasoned money in liquid assets of $5,000 to $15,000. Fortunately, some lenders actually allow the borrower to count the “cash in hand” or residual cash received outside of settlement to count for this requirement. Thus, if you were getting $20,000 cash out net after all other expenses and pay-offs, your reserve requirement would be met without verifying personal liquid assets.
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loan, money, payment, refinanceMortgage brokers and lenders use a…
January 27th, 2008 by admin | No Comments | Filed in Uncategorized…Tri Merge credit report to judge your credit worthiness. On a Tri Merge you are given three scores, one from each bureau, and are typically base you off of the middle of the three scores. The three bureaus are Equifax, Experian and TransUnion.
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credit report, equifax, experian, transunionTags: credit report, equifax, experian, transunion
Cash-Out Refinances allow you to…
January 27th, 2008 by admin | No Comments | Filed in Uncategorized…use your homes equity now. Instead of waiting till you sell the property you can use the appreciation for things that matter now. Common uses for a Cash-Out Refinance are paying off student loans, credit cards and cars. Some people use the money for a much needed vacation!
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credit card, loan, moneyTags: credit card, loan, money
A FICO…
January 27th, 2008 by admin | No Comments | Filed in UncategorizedWhen a borrower finances a…
January 26th, 2008 by admin | No Comments | Filed in UncategorizedIf you have a low credit…
January 26th, 2008 by admin | No Comments | Filed in credit…scores be sure to check your credit report carefully; it may contain errors that are bringing down your score. If this is the case ask your preferred mortgage professional about correcting the errors.
When you refinance and take…
January 26th, 2008 by admin | No Comments | Filed in Uncategorized…cash out to pay off your bills and consolidate debt, not only do you save the trouble and expense of writing and mailing all those different checks each month to all of your different creditors, you also can save up to 50% or more off of your current total monthly expenses. This puts money in your pocket each month, and can save you thousands of dollars each year.
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debt, moneyYour credit score is the…
January 25th, 2008 by admin | No Comments | Filed in Uncategorized…number that creditors use to gauge your risk factor. The higher the number, the more likely you will be approved for your loan.
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credit score, loanTags: credit score, loan
The interest rate charged on…
January 25th, 2008 by admin | No Comments | Filed in Uncategorized…the “cash out” portion may be less than the rate charged on a credit card. Using this financial tool to pay off high interest rate debt should be considered when consolidating loans.
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credit card, debt, interest, loanTags: credit card, debt, interest, loan
The number one factor…
January 24th, 2008 by admin | No Comments | Filed in Uncategorized…in determining your credit score is your payment history. If you make payments 30 or more days late quite often you will have a much lower credit score. If you pay your bills on time then your credit score will demonstrate this and be much higher. Your payment history generally accounts for roughly 35-40 percent of your total score. Since your credit score is very important in many areas of your life, it is important to work hard at keeping your credit score high.
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credit score, paymentTags: credit score, payment
Note: If you are refinancing…
January 24th, 2008 by admin | No Comments | Filed in Uncategorized…to consolidate non real estate debt, you are doing a cash out even though you may never receive any cash directly.
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debtTags: debt
A cash-out refinance is…
January 24th, 2008 by admin | No Comments | Filed in Uncategorized…the process of taking out a new mortgage at an amount that exceeds the existing balance on the current mortgage in order to refinance the original mortgage and receive additional cash for other uses. A cash-out refinance will often carry a slightly higher interest rate. The higher rate is based on studies of delinquency and default which indicate that borrowers who do a cash-out tend to have poorer payment records than borrowers who don’t. The theory is that borrowers who need cash are financially more vulnerable than borrowers who don’t, and in some cases they may be more likely to fall behind on their mortgage payment.
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balance, interest, mortgage, payment, refinanceA FICO credit score does…
January 24th, 2008 by admin | No Comments | Filed in Uncategorized…not take into account any involuntary inquiries made by businesses with whom you did not apply for credit, inquiries from employers, or your own requests to see your credit report.
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credit report, credit score, ficoTags: credit report, credit score, fico
Of course, the best…
January 24th, 2008 by admin | No Comments | Filed in Uncategorized…way to tell if a cash out refinance makes sense is to actually sit down and do the math. You can consult a refinance calculator and a home equity loan calculator and figure out how much you will save in the long run. Compare the total amounts you will spend in interest and fees. Contacting a loan specialist should be able to help you figure out what makes sense for your needs.