|
|
100% LTV REFINANCING
If you have available home equity then you may be able to do what is called “cash out refinance” and get your home equity working for you because it is just sitting there doing nothing and it makes perfect sense to use it to your advantage.
For example:
Say your home is worth $200,000 in today’s market and in 10 or 15 years it will double in value. Your mortgage balance is $125,000 which means you have $75,000 in home equity.
Home equity is the difference between home value and your mortgage balance(s).
You have no other debt so you are free to invest in other real estate but the problem is you don’t have any money for your down payment, right?
Wrong!
You have $75,000 sitting in your house doing nothing. If you were to take that money and purchase 2 other $200,000 dollar properties then in 10 to 15 years they will also double in value and you’ll have not 1 but 3 properties worth altogether 1.2 million with less than $300,000 dollars owing against them.
You have effectively leveraged your $75,000 equity to accumulate $900,000 dollars in less than 15 years and that’s much better than having 1 property worth $400,000 with $50,000 dollars still owing against it.
What would you rather have in 15 years?
Would you rather have $350,000 equity in your own home or $900,000 equity in 3 properties?
I am sure you can now agree with me that it is much better to tap into your home equity and get it working for you as soon as possible.
However, if you have accumulated other debt like credit cards or high interest rate loans and you have answered yes to any of the financial disaster warning signals then there is no way you should be purchasing more real estate.
You must pay off your bad debt first!
I see many horror stories where people who are deep in debt… are purchasing other real estate thinking this will somehow get them out of debt… and instead… they end up loosing everything!
Don’t do it!!
If you have what I call “bad debt” (any unsecured debt outside of your mortgage) then you must pay it off before you start investing in real estate!
Take advantage of your home equity… do “cash out refinance”… and use that cash to pay off your bad debt immediately.
This will improve your monthly cash flow drastically… just take a look at this example.
100% REFINANCING EXAMPLE
|
|
|
|
|
|
| Home Value |
$250,000
|
| 1st Mortgage Bal. |
$135,000
|
| 2nd Mortgage Bal |
$47,000
|
| 4 Credit Card Bal. |
$35,000
|
| 2 Loans Balances |
$28,000
|
| Total Balances |
$245,000
|
|
|
|
|
| Home Value |
$250,000
|
| Mortgage (100%) |
$250,000
|
| + Lender Fee (4%) |
+ $10,000
|
| Total Mortgage |
$260,000
|
|
|
| Mortgage Rate |
7.80%
|
|
|
|
|
|
|
|
|
|
|
| 1st Mortgage |
$924.82
|
| 2nd Mortgage |
$555.53
|
| Credit Cards |
$1,050.00
|
| Loans |
$681.85
|
|
|
| TOTAL PAYMENTS |
$3,212.20
|
|
|
|
|
|
|
|
|
| 1st Mortgage ($260,000) |
$1,951.30
|
| 2nd Mortgage (nil) |
$0
|
| Credit Cards (nil) |
$0
|
| Loans (nil) |
$0
|
|
|
| NEW ONE PAYMENT |
$1,951.30
|
|
|
| MONTHLY SAVINGS |
$1,260.90
|
|
|
Before example rates: 1st mortgage 6.75% with 25 year amortization, 2nd mortgage 12.00% with 15 year amortization, Credit Cards 10.50% with 3% minimum payment on outstanding balances. Loans 8.00% with 4 year amortization
|
100% LTV refinancing is just one of the many options out there BUT it should be used only in very rare situations because the interest rate on 100% LTV refinancing product is higher than bank posted rate.
You may qualify for a lower interest rate product and therefore if you are unsure which product is the best product for your situation then simply complete my online secure server application form and I’ll provide you with all of your best refinancing options quickly!
You’ll be glad you did – I guarantee it!!
SELECT A PROFESSIONAL...
Get Approved Using My Proven Services...
... in Less Than a Day!
APPLY ONLINE IN LESS THAN 10 MINUTES
If you answered "YES" and you want to take advantage of my proven mortgage services -- HERE ARE THREE EASY WAYS FOR YOU TO GET STARTED:
- CLICK HERE TO APPLY ON-LINE ON MY SECURE SERVER
Remember... there are NO upfront costs and NO obligations. If you are not satisfied with my work then you can cancel at anytime!
- CLICK HERE TO PRINT & FAX APPLICATION
The online application is securer but if you prefer faxing it then print my 'printable' application form and fax it to me toll free to 1-888-416-4096
- MAIL YOUR APPLICATION
If you prefer using "SNAIL MAIL" then mail the 'printable' application to the following address: VERICO Mortgage Network London Inc. Attn: Joe Malek, AMP... 321 Springbank Drive, London, Ontario, N6J 1G6
For faster service please use online application. Your request will get a top priority and you could receive your approval in less than a day!
Sincerely,
Joe Malek, AMP
Your Mortgage Agent (Lic.# M08004649)
Accredited Mortgage Professional and Debt Consolidation Expert!
P.S. That's all it's to it... no running around... no time consuming appointments... no office visits... and the lowest rates around!
P.P.S. Don't forget to
, subscribe to my mortgage tips newsletter and check out my mortgage blog
|
VERICO Network is the fastest growing mortgage organization in Canada. Since 2005 the network has grown to over 150 locations throughout Canada that employ over 1,000 agents who collectively originate in excess of $7 Billion in mortgage loan volume.
|
|
|
|
|
