Mortgage News
Consider
a Cash Out Refinance,
Turn Your Present Home Into a Rental and Buy a New Home! Denver, CO - Many consumers
that were first time buyers a few years ago and have experienced
appreciation, consider selling their present home and use the accumulated
equity to purchase a larger, newer home. In real estate circles this type
of buyer is referred to as a "move up buyer." The stimulus for
this move usually comes from a couple visiting a few model homes offered
for sale by a local builder and then falling in love with a new home to
repeat the process. If the last home they bought appreciated and was a positive
investment, why not repeat the process? Explore all your options prior to
making the commitment to sell your present property to buy a new one.
Some of the most successful investors of all time have achieved their
results through the process of accumulating rental real estate. Real estate
cycles are very common to stock market cycles. Both housing and real estate
go up and down, however holding an investment or real estate over an
extended period of time usually proves to be a wise strategy. No one ever said
a person has to sell their home to access their equity.
When a consumer purchases their home and lives in it, and at a later time
they decide to convert the property to a rental, they now have a rental
with financing usually reserved for home owners. You can convert what used
to be an owner occupied investment into a rental investment without having
to refinance into a „non-owner occupied¾ mortgage. And with mortgage
programs available requiring minimal down payments in today's markets,
accessing your equity may not be necessary. Another option may be if your
property has experienced appreciation, you want to take advantage of
today¼s low interest rates, pull cash out, temporarily invest the cash in a
money market account or to use a portion of the proceeds to consolidate
debt. As an opportunity presents its self, you have already pulled out the
needed cash and can use it as a down payment for another home in the near
future.
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