Recently on AmericanMonetaryAssociation.org, we discussed how the housing collapse from 2008-2011 changed the playing field in terms of mortgage lending. New standards have been set by lenders to create a new class of “permanent” renters in the aftermath of massive defaults on mortgages. At the same time, they’re offering fantastic opportunities to income property investors. Here are some of the major points we covered in the article.
– Although mortgage rates are nearing record lows, fewer applications are being processed.
– While this is bad news for hopeful home owners, it creates good news for investors who follow Jason Hartman’s plan to buy income property with a long-term fixed-rate mortgage.
– Because of how the Federal Reserve has intervened, fixed-rate, 30 year mortgages recommended by Jason Hartman are currently around 3 percent.
– Regardless, mortgage rates are lower due to the recent housing collapse and current economic conditions.
– The housing crisis led to massive herbal viagra foreclosures in numerous markets across the country, due to the mortgage application process being so easy. These property owners lost control of the mortgage, which resulted in the loss of their home.
– Many home owners who held onto their homes have already refinanced and are not seeking any more financing options.
– Those who don’t currently own property aren’t in a position to reenter the housing market.
– Lenders have established stricter eligibility standards, and many would-be home owners simply can’t meet those standards given current economic conditions.
– The current state results in a large number of renters on the market, and a high demand for rental property.
– Because fewer home owners are buying, these income properties are available for investors who can qualify for these low rate mortgages.
– cheapest viagra Though fixed-rate mortgages can reflect the national average, they vary from state to state. These properties work on a fixed-rate and don’t change over the course of the loan. This allows income property investors to have the tenant pay for the loan. As interest rates changed, these mortgages can be refinanced.
We go on to discuss a key piece of Jason Hartman’s plan, “refi til you die.” This strategy allows investors to take advantage of the conditions of fixed-rate mortgage conditions throughout the course of the loan. With more available properties and less competition, income property investors can enjoy new opportunities.
Interested in learning more? Read the full article, “Mortgage Market Changes: Good News for Investors” for more information about how the market is changing in a favorable way for real estate investors. Visit AmericanMonetaryAssociation.org for more detailed educational articles and podcasts regarding success in our current world. If you’re interested in investing in income property, Jason Hartman and his panel of real estate experts are hosting an in-depth seminar, “Meet the Masters of Income Property Investing,” which explains the ins and outs of income property investment. (Top Image: Flickr | 401(K) 2012)
The Hartman Media Company Team