Posts Tagged ‘mortgage interest rate’

HomeVestors Realizes That Falling Mortgage Applications Signify An Increase In Tenants

Monday, June 8th, 2015

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Real estate investors who purchase a rental property should be able to take advantage of the increase in tenants nationwide, as fewer people are seeking housing. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that aspiring real estate investors who are considering entering the field through a rental property should consider doing so in the near future. As falling mortgage applications indicate that fewer buyers are seeking housing at this time, the numbers of tenants nationwide are likely to increase. Those investors who can pinpoint the most ideal region of the country and purchase a rental property will likely find that they earn a significant profit on their investment.

The number of homeowners in the United States continues to decrease on a consistent basis and those who purchase rental property will be able to capitalize fully on the increase in tenants that are likely to materialize nationwide.  The falling mortgage applications that have been experienced over the last couple weeks are an indicator of a market that is favoring renting property over purchasing housing. The reason that mortgage applications are decreasing is because mortgage interest rates are increasing. Those investors who understand this trend should capitalize by purchasing a rental property before even further increases in mortgage interest rate.

When looking to take advantage of the falling mortgage applications trend, investors should search throughout the United States real estate market for the most ideal location for a rental property.  Investors who are able to purchase a rental property in one of the growing regions throughout the country will be able to earn the greatest profits. When searching for a market that is likely to be profitable, look for regions that are experiencing strong population growth, expanding business development, and increasing property values.

Those investors who are able to pinpoint regions that allow for growth should take their time when looking for the most ideal investment. While moving quickly when mortgage interest rates are increasing is generally a good idea, investors need to make sure that they purchase an investment that is in ideal condition. Those investors who are able to secure the most ideal rental property should be able to take advantage of the falling mortgage applications throughout the nation, as they will have even more tenants throughout the next couple of years.

Investors who want to capitalize on the falling mortgage applications trend should purchase a rental property in order to take advantage of a greater number of tenants on the market.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

HomeVestors Knows That The Mortgage Interest Rate Is Likely To Be Going Up Soon

Monday, March 2nd, 2015

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Mortgage interest rates are likely to increase soon, as the QE program has come to a close.  Investors who are still looking to take advantage of lender financing should act quickly.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that the QE program has officially ended and the investors who were looking to secure lender financing at an extremely low mortgage interest rate should act fast.  While the rates have remained relatively the same in the days following the announcement, don’t expect this to last long.

Investors who want to take advantage of lender financing need to realize that the money from the QE program is what has kept the mortgage interest rate at historic lows.  The Fed has decided that the economic recovery can now stand on its own legs without further support.  This means that those who want to take advantage of lender financing are going to have to foot the bill.

Investors who have been keeping track of the current mortgage interest rate and are looking to secure a mortgage when the rate is at its lowest should act now.  Investors who don’t secure financing now, while the mortgage interest rate is a little over 4% will end up kicking themselves when they find that the rate has increased over 5%.

It looks like investors might have a little time to secure a low mortgage interest rate, as these rates may continue into 2015, however, investors who act quickly will be able fully capitalize on these rates.  Investors are advised to take their time and find the best investment on the market, while moving through the process diligently.

If the mortgage interest rate increases above 5%, expect that fewer buyers will be available and that property values will likely fall.  Investors who are paying cash for investment properties would be able to take full advantage, if the market switches from sellers to buyers.  If sellers end up collectively panicking after seeing their property values drop a significant amount, expect that inventory will hit the market and take property values further down the spiral.  The investors who patiently wait by the sidelines until this becomes evident will be able to choose from a large amount of inventory and end up dealing with desperate sellers.

Investors who find a real estate investment in the next couple of weeks might be able to lock in an extremely low mortgage interest rate, but should realize that the longer they wait, the higher interest rates will climb.

HomeVestors Knows How To Capitalize On The Current Mortgage Interest Rate

Friday, May 23rd, 2014

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Investors who are looking to secure lender financing should act now, as mortgage interest rates are relatively low. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that real estate investors who have great credit and are looking to secure property now should take advantage of the current mortgage interest rate, at 4.20%.  Those who have the ability to capitalize on this rate should look to purchase a single family, duplex or 4-plex rental property that can be secured under a typical residential loan.

Investors who are able to take advantage of the current mortgage interest rate should do so by purchasing a small rental property.  The reason for this is because rental properties that have four or fewer units can be secured under a typical residential mortgage.  Investors who have excellent credit can obtain this type of property at a 4.20% interest rate.

Investors who are looking at purchasing a large apartment complex are generally looking at a mortgage interest rate that is at least two percentage points higher than this going rate.  They will also have to place a large down payment on a property and need far more liquid capital up front.  Lending institutions consider these types of investments to be far more risky and need to justify them by charging a higher interest rate.

Investors who want to purchase a small rental property should choose an area of the country that is increasing in value and has a number of interested tenants in the vicinity.  Many investors start out their investment career by purchasing a duplex.  They generally live in one side and rent the other side out to pay the mortgage payment.

Investors who do this can capitalize on the current mortgage interest rate and get an understanding for the business.  Investors who live on site can monitor a property and be able to respond to problems in a timely manner.  These investors will get a taste for the business and can decide if it is right for them.

If so, investors can consider purchasing another duplex or even a 4-plex and expand their presence.  Many real estate investors choose to work like this and slowly move up in the business.  Some investors decide to eventually purchase a large-scale apartment complex and take full advantage of the business, making it a full time career.

Investors who have the credit rating and can capitalize on the current mortgage interest rate of 4.20% should do so.

HomeVestors Knows That The Mortgage Interest Rate Is Still Affordable

Friday, January 31st, 2014

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Investors who are thinking about using lender financing to purchase an investment should do so while the mortgage interest rate is still below 5%. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that the mortgage interest rate is still at an affordable rate, 4.39%.  Expect that this rate is going to increase slowly over the next couple of years.  Those investors who have been thinking about securing lender financing to purchase an investment property should consider doing so in the near future.

While the mortgage interest rate at 4.39% seems high in comparison to what it was a year ago, it is still quite low based on historical rates.  Those who purchase a property in the beginning of this year should be able to secure a mortgage interest rate under 5%, but those who are considering waiting until the summer to purchase an investment property will likely be faced with mortgage interest rates that are above 5%.

Investors who are forced to lend money from the bank will have to pay the going mortgage interest rate no matter what it is.  This is why investors who have a property in mind should move forward swiftly and close on it.  Investors who are waiting around for a better mortgage interest rate will not likely to receive it, as the Fed has recently reduced their bond-buying program.  The effects of this bond-buying program kept mortgage interest rates affordable through the QE program.  The era of easy money is coming to a close and investors who still want to capitalize on it need to secure a mortgage now.

Investors who are thinking about purchasing an investment property in the next couple of years should realize that the mortgage interest rate could creep up to 7% or more, effectively cutting into an investor’s profits.  Those who have the option to purchase an investment now should consider this to be their best option.

If mortgage interest rates do end up moving up to 7%, expect that real estate investors will scale back on their purchases and sit on their laurels.  Those who have the liquid capital to make purchases at that time will likely be able to capitalize to the fullest degree, as buyers of all types will be sitting by the sidelines.  This will result in significant drops in property value and the ball will officially bounce into a buyer’s court.

Those investors who take advantage of the current mortgage interest rate can capitalize on their investment to the greatest degree.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.