Lower Your Monthly Payments With Refinancing That Doesn’t Require an Appraisal!

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So many homeowners today are finding themselves in a situation where they are underwater and they can barely stay afloat.  For those that have financing under the umbrella of the FHA or VA, there may be some better days ahead.  If you are the owner of a home that is worth less than what you owe on the property, there may be some welcome relief in store for you through something called “streamline refinancing”.

Minimal Investigative Processing During Application

The single biggest relief this provides homeowners (other than there being lower payments at the end of the process) is that the refinancing process does not entail the same rigorous scrutiny as before when the original mortgage application was being processed.  Streamline refinances offer the unique advantage of having no income, asset or employment verifications – leaving the homeowner with a lot more breathing space and flexibility.  Since the program is only available to homeowners that are current and have never been delinquent on their loan, the idea is that if they are able to afford making payments at the present higher rate, they will likely be able to afford new, lower payments.

No Need For An Appraisal

The fact that these types of refinancing applications do not require an appraisal in order to be approved provides welcome relief for homeowners sitting on properties that have experienced a substantial dip in value over the years since purchase.  In fact, that is one of the most prevalent reasons homeowners neglect to seek assistance in the first place.

Quick Processing With No Cost to Homeowner

The “fast” in “fast-track” comes from the quick processing of these refinance applications.  Unlike the grueling process of regular mortgages, lesser paperwork plus an already-established payment history with the lender allows lenders the capability to quickly manage the paperwork and processing.

As an added benefit of the program, borrowers are able to get away with even less out-of-pocket expense when lenders either pay most of the closing costs in exchange for a slightly higher interest rate or if closing costs are rolled into the loan balance.

Program Requirements 

There are some basic requirements that must be met in order to qualify for streamline refinancing and as long as the homeowner meets them there are better chances for lower payments and ultimately being able to keep their home long-term.

The mortgage must currently be insured by the FHA in order to qualify. Also, there can be no delinquency on the mortgage and the payments must be current.  Finally, the borrower’s monthly principal and interest payments must be lower as a result of the refinance.  Something to be aware of is that once you refinance under this program you will not be able to cash in on the equity of the home.  There are other rules to be aware of as well, all accessible on the HUD website.

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With this program there is new hope for countless Americans that have been struggling to successfully keep their homes afloat.  Underwater properties are definitely a major concern for many homeowners that bought their properties during the real estate boom years and are enduring the harsher times of today.  But with a little discipline (make sure to keep your payments current!) you can see a future with your home in it.

For more information on how you can qualify and apply for streamline refinancing, contact your Realtor today.

With Market and Interest Rates Down – Does That Mean Property Investment Is a Good Idea?

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So many people are wondering these days whether it is a good time to invest in property.  It’s no secret that interest rates are at an all-time historic low and when combined with the low housing prices we are still seeing these days, more and more people are considering real estate investment.

How can you tell if it is the right thing for you?  And if you do decide you want to venture into buying property for the sake of investment, how do you go about it and what type of dwelling makes the most sense? 

The answer is largely dependent on your individual investment goals.

Overall Appreciation Perfect for Long-Term Security
The easiest way to enjoy significant returns on investment is through the purchase of a single-family home.  Historically more popular, these properties are easier to rent out, entail less day-to-day management and they can be assumed as primary residence at any given time the investor would so choose, providing an added sense of security.  Home values do appreciate with time and single-family homes typically rise in value faster than other rental property types.

It is important that the property is located in a desirable location and also that it is easily rentable.  Your Realtor can assist you with an analysis of the area’s statistics in term of rent versus buy situations as well as a look at what other similar properties are renting out for.

Slow and Steady Monthly Income
Rental units that comprise of anywhere from 2 to 12 (or more) family units within the property are perfect for monthly real-time cash flow. While they may not appreciate as much as single-family homes, they provide the comfort and safety net of steady monthly income.  If increased cash flow is the goal then opting for multi-unit rental properties may be the best route to take.

Demographics play a key role in determining your investment.  For instance, if you live in a college town then a rental home near the college or downtown would be ideal for many senior or grad level students that prefer easy access yet quality housing.  Conversely, resort homes are also attractive and as long as they are located near some tourist attractions you may be able to yield decent rental income. Rental units in big cities are also popular in the more bustling areas of town.

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Given the increase of rental units and investment properties being rented out, there has been an influx of property management companies set up.  Ideal for the silent investor or someone that does not have a lot of time to put into the actual management of properties, property management companies handle anything from market analysis, finding and screening tenants plus managing the move-in process to handling day-to-day affairs like collecting rent or property maintenance.

If you can afford it and have investment goals that line up with some of the returns that are apparent with property investment, contact your Realtor to get a feel for what is available out there.  This is definitely a very interesting time to pursue an investment property.