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Why do the rich get richer? Because they know a good deal when they see a "For Sale" sign in front of it. The current market is bringing out all the savvy investors who are buying low, renting and then selling when the market flips. You don't have to be Bill Gates to take advantage of this opportunity. Here are some great ways to get into some investnent properties...
| Interest First 5/1 Year ARM |
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Initial fixed interest rate for 5 full years.
The rate adjusts annually thereafter.
Allows for higher loan amount qualification and enhanced buying power.
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| You want:
To keep your payments low.
To maximize the amount of loan you qualify for.
The stability of a fixed monthly payment for first five years of loan.
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It's riskier if you don't expect your income to increase over the initial five-year period to cover the change in monthly payment.
Interest rate can rise above the current fixed rates over time.
Conversion to a fixed rate is not available.
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Rate caps = 2% per adjustment and 5% over the lifetime of the loan.
Index = 1 yr. T-bill
Margin = 2.625%
| Interest First 7/1 Year ARM |
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Initial fixed interest rate for 7 full years.
The rate adjusts annually thereafter.
Allows for higher loan amount qualification and enhanced buying power.
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| You want:
A longer initial fixed period than the InterestFirst 5/1 ARM.
To keep your payments low.
To maximize the amount of loan you qualify for.
To stay in the home for less than 7 years.
The stability of a fixed monthly payment for first seven years of loan.
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The interest rate can increase dramatically after the first 7 years.
Conversion to a fixed rate is not available.
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Rate caps = 5% at the first adjustment, 2% thereafter
5% lifetime cap
Index = 1 yr. T-bill
Margin = 2.625%
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| 7/1 Year ARM |
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Initial fixed interest rate for 7 full years and the rate adjusts annually thereafter.
Allows for higher loan amount qualification and enhanced buying power.
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You plan on staying in your home a short period of time
You want a longer initial fixed period than the 5/1 ARM.
You want to keep your payments low.
You want to qualify for higher loan amounts with lower interest rates.
The stability of a fixed monthly payment for first seven years of loan.
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It’s riskier if you don’t expect your income to increase over the initial seven-year period to cover the change in monthly payment.
Interest rate can rise above the current fixed rates over time.
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Rate caps = 5% at the first adjustment, 2% thereafter
5% lifetime cap
Index = 1 yr. T-bill
Margin = 2.625%
Fixed rate conversion option available on the 1st, 2nd, and 3rd, adjustment dates only.
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The Rates Are Lower -- Way Lower:
Because ARM's are subject to rate adjustments later on, the initial interest rate is set lower than standard fixed rates. This rate provides you with initial lower payments or increased purchasing power.
Lets get started creating your retirement plan...
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Buyer Education