Category Investment

The Secret Behind Points And Closing Costs Part 5

The Secret Behind Points And Closing Costs

The Secret Behind Points And Closing Costs: Welcome To Part 5

Welcome back to the series. In the previous edition we have covered different secrets behind points and closing costs. Some of things you may have known, some you may not have known, and then some you have heard but did not understand.

If you have not read part 4, I recommend clicking here, The Secret Behind Points And Closing Costs, because the secrets will build upon each other.

With that out of the way,  let us continue with the series and uncover more secrets.

The Secret Behind Points And Closing CostsThe Secret Behind Points And Closing Costs: Escrow And Title

The fourth category includes your escrow and title charges. Escrow fees will range from $250 and $900, depending on the size of the transaction.

Expect between $100 and $160 for recording and $35 to $100 ...

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The Secret Behind Points And Closing Costs Part 4

The Secret Behind Points And Closing Costs

The Secret Behind Points And Closing Costs: Welcome To Part 4

Welcome back to the series. In the previous edition we have covered different secrets behind points and closing costs. Some of things you may have known, some you may not have known, and then some you have heard but did not understand.

If you have not read part 3, I recommend clicking here, The Secret Behind Points And Closing Costs, because the secrets will build upon each other.

With that out of the way,  let us continue with the series and uncover more secrets.

The Secret Behind Points And Closing CostsThe Secret Behind Points And Closing Costs: Calculate It Yourself

For origination and points, you can calculate it yourself. The origination will be 1% of the loan balance. If you have a first and second mortgage, it will be 1% of the combined mortgages.

If you’ve...

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The Secret Behind Points And Closing Costs Part 3

The Secret Behind Points And Closing Costs

The Secret Behind Points And Closing Costs: Welcome To Part 3

Welcome back to the series. In the previous edition we have covered different secrets behind points and closing costs. Some of things you may have known, some you may not have known, and then some you have heard but did not understand.

If you have not read part 2, I recommend clicking here, The Secret Behind Points And Closing Costs, because the secrets will build upon each other.

With that out of the way,  let us continue with the series and uncover more secrets.

The Secret Behind Points And Closing CostsThe Secret Behind Points And Closing Costs: What They Are Not Saying To You

The industry has gone beyond avoiding ‘points’. They’re actually avoiding the origination as well...

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The Secret Behind Points And Closing Costs Part 2

The Secret Behind Points And Closing Costs

The Secret Behind Points And Closing Costs: Welcome To Part 2

Welcome back to the series. In the previous edition we have covered different secrets behind points and closing costs. Some of things you may have known, some you may not have known, and then some you have heard but did not understand.

If you have not read part 1, I recommend clicking here, The Secret Behind Points And Closing Costs, because the secrets will build upon each other.

With that out of the way,  let us continue with the series and uncover more secrets.

The Secret Behind Points And Closing Costs

The Secret Behind Points And Closing Costs: Know What Is The Break-even Amount

What’s the break-even for buying the interest rate down? Well, for a 30-year fixed mortgage, the break-even is usually between 3 and 4 years...

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The Secret Behind Points And Closing Costs Part 1

The Secret Behind Points And Closing Costs

The Secret Behind Points And Closing Costs: What You Should Know

Should you pay points?

What are points?

Is that money going directly into the Loan Officer’s pocket?

Well, that depends. This article will look at these questions as well as a few others to see which strategy makes the most sense in the long run. We’ll also look at the math to calculate when points make sense and when they don’t.

The Secret Behind Points And Closing Costs

The Secret Behind Points And Closing Costs: What Are They Exactly

Let’s start with the definition. A point is 1% of the loan balance. So if you’re getting a $500K loan, one point is $5000. The ‘standard closing cost structure’ will include one point. In fact, the first point is referred to as ‘origination’.

The Secret Behind Points And Closing Costs: Origination Fee

The originatio...

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Financial Strategies For Investors To Consider Part 3

The Secret Behind Points And Closing Costs

Financial Strategies For Investors To Consider: This Last But Definitely No Least

Welcome back, this is part 3 of the saga called, “Financial Strategies For Investors To Consider”. We have covered a lot of information thus far in part 1 and 2.

For those you that might have missed it, you are in luck.

You can click here to check out and read part 2 on Financial Strategies For Investors To Consider.

Financial Strategies For Investors To Consider
Financial Strategies For Investors To Consider: Getting In The Mind Of The Underwriter

You have to understand how underwriters evaluate investment properties. It really doesn’t matter how much equity you have. They only look at the cash flow impact of owning it.

And you can show that impact in one of two ways...

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Financial Strategies For Investors To Consider Part 2

The Secret Behind Points And Closing Costs

Financial Strategies For Investors To Consider: This Will Be More Than Just Two Cents Worth

Welcome back, this is part 2 of the saga called, “Financial Strategies For Investors To Consider”. We have covered a lot of information thus far in part 1.

For those you that might have missed it, you are in luck.

You can click here to check out and read part 1 on Financial Strategies For Investors To Consider.

Financial Strategies For Investors To Consider

Financial Strategies For Investors To Consider: Lets Talk About Speculators

What about the speculators? People buying for 3 to 5 years. Well, the negative amortization Option ARMs are extremely popular.

I’m not a big fan of Option ARMs because they’re risky and largely misunderstood by those who get into them...

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Financial Strategies For Investors To Consider Part 1

The Secret Behind Points And Closing Costs

Financial Strategies For Investors To Consider: Lets Start With The Basics

Real estate investors can be broken down into three categories with the distinctions between them based on the length of time the property is held. On the short end, you’ve got flippers. These guys look for properties on the cheap, maybe put some money into fixing them up and then selling for a profit.

For the most part, they have no intention of renting the property out and work as quickly as possible to complete the deal. This category represents a lot of the people chasing foreclosures and probate sales.

From the lending perspective, their biggest motivators are low down payments and NO prepayment penalties. They’ll even pay exorbitant Subprime interest rates to put these deals together without penalties.

Financial Strategies For Investors To Consider

Fina...

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How To Profit From Buying Unfinished Homes

The Secret Behind Points And Closing Costs

How To Profit From Buying Unfinished Homes: A Great Way To Make Sure You Buy Low

Unfinished homes present a great way to save a lot of money and get yourself a new home in the process.  If you buy an unfinished home, you can keep your monthly mortgage payment low and also lower your initial investment.

You may also be able to buy a larger foundation size as well, which you can easily add on to and save money in the process.

How To Profit From Buying Unfinished Homes

How To Profit From Buying Unfinished Homes: Understanding The Equity Concept

Normally, unfinished starter homes leave the upstairs area unfinished.  The question here, is just how much equity you want to put into an unfinished area.

Sometimes though, an unfinished home may leave the roofing, framing, plumbing, or electrical aspects unfinished.

Before you make a purc...

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The Reasons To Lease To Own Real Estate

How To Profit From Buying Unfinished Homes

The Reasons To Lease To Own Real Estate: Credit Problems, Forget About It

Credit problems plague people across the globe.

These problems can lead to many other problems not limited to difficulty purchasing vehicles, getting jobs, opening checking accounts, and purchasing or renting a home.

For those who are experiencing credit problems hope seems like a long lost commodity when it comes to the very American dream of owning a home of one’s own.

The Reasons To Lease To Own Real Estate

The Reasons To Lease To Own Real Estate: There Is Good News For The Hopeless

The good news is that there are some savvy investors around that are willing to take the risk on those who have had credit problems but are attempting to get their lives back in order.

The bad news is that this good will often comes at a rather high price to the consumers.

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