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MAJESTIC HOME LOAN

Buy an Investment Property with the Equity in Your Home



Homeowners today are enjoying the increased equity in their home. After several years of price deflation in most parts of the country now not only has that lost equity returned it’s still gaining. This means homeowners have easy access to that equity to do with whatever they please. And one place to use this equity is to take advantage of rising rental rates here in the United States. Homeowners can tap into this equity in two ways, an equity loan or a cash out refinance and use the proceeds as a low cost down payment to buy a rental property.

An equity loan comes in the form of a separate, second lien. This lien will carry a slightly higher interest rate compared to the first lien but when compared to installment or revolving credit the rate is extremely competitive. How much is available? Most equity loans allow homeowners to access up to 90 percent of the current value of the property. When applying for an equity loan, the lender will document the file in very much the same manner as the first including ordering a new appraisal. The new appraisal will provide the current value lenders use when determining how much money can be borrowed.

The other way to tap into this equity is with a cash out refinance. When borrowers decide it’s time to refinance either by switching from an adjustable rate to a fixed or to change loan terms, in the process they can also pull out equity in the form of cash at the closing table. When replacing the previous mortgage with a new one, after all closing costs are considered, cash proceeds can be given to the borrower.

If you’ve got equity in your home and you’ve got some ideas on what to do with it, contact your loan officer and discuss your available options and find out how easy it is to turn equity into a down payment and closing costs for an investment property.

WE CAN HELP
ACCOMPLISH YOUR GOALS.
  • LOWER MONTHLY PAYMENT
  • LOWER INTEREST RATE
  • REDUCE YOUR TERM
  • PAYMENT RELIEF
  • HOME IMPROVEMENT OPTION
Questions?
Contact us to get your questions answered.
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1-855-273-9890
 
1819 S. Excise Avenue Ontario, CA 91761
 
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