Insider Real Estate Secrets Revealed! (Educational Course for Home Buyers and Sellers) Lesson # 4
Darren Meade
December 08, 2006
Welcome to this week's edition of Insider Real Estate Secrets Revealed! (Educational Course for Home Buyers and Sellers)
We hope you have learned a tremendous amount from our articles and we look forward to providing more educational material to help you on your home buying or selling journey. In this edition of Insider Real Estate Secrets Revealed, we will discuss the secrets of Interest-Only Loans. We will also discover 3 common reasons why your home might not be selling. So, sit back, relax, and enjoy this edition.
Interest-Only Loan Secrets Revealed!
As of late, more and more people are opting for 'interest-only loans'. But they are actually only appropriate for a small group of borrowers. And in some cases, they can be the equivalent of 'financial death'.
Here is what you will learn in this report:
What is an interest-only mortgage?
How to know if you are a candidate for an interest-only loan
Common Interest-Only Loan Myths
How to determine if you qualify for an interest-only loan
Is an interest-only loan right for you? Find out by reading the full report below.
What is an interest-only mortgage?
An interest-only mortgage is a special type of mortgage loan which allows you the choice of making interest-only payments each month. If you have an interest-only loan, you are not required to pay principal and interest every month, as you are with a traditional mortgage loan.
You have the right to choose to only pay interest. Usually, the option to pay interest only lasts for a specified period, usually 5 to 10 years.
WARNING: If you choose to pay only interest every month, you will never pay down your loan balance and your original loan amount will remain unpaid. (Example - if you obtain a $125,000 mortgage loan and pay only interest and no principal for the first 5 years, your loan balance will still be $125,000 at the end of year 5.
How to Determine if an Interest-Only Loan is Right for You
The first question you need to ask yourself is this: 'Am I disciplined enough to make the payment to principal when I'm not required to.' If the answer is no, an interest only loan may not be right for you.
Many borrowers opt for an interest only loan to be able to afford a home they would not otherwise be able to afford with a traditional mortgage. We advise against this practice. Only purchase a home if you can afford to pay a full interest and principal payment every month. The consequences of purchasing more home than you can afford can be serious.
An interest-only loan may be right for you if you have a fluctuating income and need the flexibility of paying interest-only when you are strapped for cash. Consultants and other professionals love interest only loans for this reason.
Additionally, an interest-only loan is great for people who want to invest the money that would have otherwise been paid toward principal into a higher-yielding investment. For this to succeed, your return on investment must exceed the mortgage interest rate on your interest-only loan.
Common Interest-Only Loan Myths
Myth #1 - Interest only loans don't require mortgage insurance
Interest-only loans having a down-payment of 20% or less require mortgage insurance in many cases. Some interest only loans are insured by the lender as opposed to a traditional mortgage insurance company. This means that you will pay for the insurance, but it will come in the form of a slightly higher interest rate. Make sure you ask the lender how your loan is being insured.
Myth #2 - Interest-Only Loans amortize faster than regular loans
Interest-only loans amortize no faster than a traditional loan. There is no magic connected to amortizing an interest-only loan. A borrower who takes an interest-only option but decides to make the full payment instead, will amortize their loan in exactly the same way as the borrower who chooses a traditional mortgage loan.
Do YOU qualify for an Interest-Only Loan?
Did you know that most people can easily qualify for a mortgage loan? Although the interest-only option is not available to everyone, it is unlikely you will be turned down for a mortgage altogether. Remember, mortgage lenders are in the business of saying YES. We don't make money unless we say YES.
Let us say YES to you today by filling out FREE, Secure 24-Hour Online Approval Form. It's fast, easy and 100% secure. We promptly let you know if you qualify for an interest-only loan. We'll also be happy to help you decide if an interest-only loan is right for you.
Take advantage of this FREE offer by visiting my website NOW!
P.S. - Don't forget that we are in the business of saying YES. We can't wait to shake your hand and tell you 'Congratulations, You're Approved!'.
3 Reasons Your Home Didn't Sell and what to do about it
Statistics say that, last year, almost half the homes listed for sale never actually sold!
Industry insiders have recently studied the reasons for this phenomenon and present to you this no-cost report explaining the reasons you home might not have sold and, more importantly, what you can do about it!
Here is a countdown of the Top 3 Reasons Your Home Likely Did Not Sell and a Solution for each:
3 Reason Your Home Didn't Sell - Condition / Appearance
Now, don't get offended by the title of Reason #3. If you want your home to sell, you need to put pride aside and seriously consider this. Just because you think your home is spectacular and in showcase condition, doesn't necessarily mean the buyers who toured your home agree.
It may be the paint colors you are using. It could be tarnished fixtures, stains in your driveway or overgrown landscaping. There are 25+ Ways you could make your home look and present better. Why not review this checklist of 25 items and see if there is anything you might have overlooked.
Below, we will offer you a no-cost 25-Point Checklist. Review it and see if there is anything you could be doing better the next time around.
2 Reason Your Home Didn't Sell - The Price
Price is one of the most important items to consider when selling your home. If your home is priced too high, your home will languish on the market for months. If the price is too low, you will lose thousands of dollars in hard-earned equity needlessly.
Remember - It's not what your house is worth, but what someone is willing to pay. You need to gauge market conditions properly for your area, and then set a bit lower than the average. If you price your house according to the market, it's not likely to sell quickly. That's because the top 10% or 20% of houses with the best prices are selling each month in this area. If your house isn't in that lower 20% range, then it isn't likely to sell as quickly.
1 Reason Your Home Didn't Sell - Marketing Woes
Your Real Estate Agent is in charge of marketing your home. If they did not do this job properly, maybe you need to be seeking a new agent. Why continue working with someone who cannot provide results?
You need an innovative and unique marketing plan to help sell your home fast and for top dollar. Here are three things that 'good' Real Estate Agents do for their clients:
1.) They purchase advertising space in the local Homes & Land Magazine and then place an ad for your home in their pre-purchased space. The ad should be descriptive and contain a flattering photo of your home.
2.) They list your home in the local MLS Computer Database. This is the database that Realtors® use to find the perfect home for their buyers. If your home is not listed here, you are in trouble. & vbCrLf &
3.) They make themselves available to answer calls and promptly get back to buyers with courteous, professional answers.
NOW AVAILABLE! - NO-COST HOME SELLER 'POWER PACKAGE'!
Attract Buyers to Your Home in Droves using our system
Find a Top Realtor in this area using our no-cost 'Agent Locator Service'
Receive the No-Cost Report, 25 Ways TO Make Your Home Sell.FAST!
Get Pre-approved for your next home loan, at no cost!
Find your next home without the hassle, using our No-Cost 'VIP Home Buyer Program'
Learn how to properly price your home and factor in market conditions
Why are we offering all of this at no cost? Simple - if we do a good job helping you prepare, maybe we can earn your mortgage business. We are sure willing to try. Are you willing to give us a try? If so, please fill out our 'NO-COST 'Home Seller Power Package' Request Form Below. We'll promptly send you the no-cost Report. This is 100% NO-COST, and there is NO Obligation.
Don't wait! Visit my website and request your no-cost package now!
We hope you have learned a tremendous amount from our articles and we look forward to providing more educational material to help you on your home buying or selling journey. In this edition of Insider Real Estate Secrets Revealed, we will discuss the secrets of Interest-Only Loans. We will also discover 3 common reasons why your home might not be selling. So, sit back, relax, and enjoy this edition.
Interest-Only Loan Secrets Revealed!
As of late, more and more people are opting for 'interest-only loans'. But they are actually only appropriate for a small group of borrowers. And in some cases, they can be the equivalent of 'financial death'.
Here is what you will learn in this report:
What is an interest-only mortgage?
How to know if you are a candidate for an interest-only loan
Common Interest-Only Loan Myths
How to determine if you qualify for an interest-only loan
Is an interest-only loan right for you? Find out by reading the full report below.
What is an interest-only mortgage?
An interest-only mortgage is a special type of mortgage loan which allows you the choice of making interest-only payments each month. If you have an interest-only loan, you are not required to pay principal and interest every month, as you are with a traditional mortgage loan.
You have the right to choose to only pay interest. Usually, the option to pay interest only lasts for a specified period, usually 5 to 10 years.
WARNING: If you choose to pay only interest every month, you will never pay down your loan balance and your original loan amount will remain unpaid. (Example - if you obtain a $125,000 mortgage loan and pay only interest and no principal for the first 5 years, your loan balance will still be $125,000 at the end of year 5.
How to Determine if an Interest-Only Loan is Right for You
The first question you need to ask yourself is this: 'Am I disciplined enough to make the payment to principal when I'm not required to.' If the answer is no, an interest only loan may not be right for you.
Many borrowers opt for an interest only loan to be able to afford a home they would not otherwise be able to afford with a traditional mortgage. We advise against this practice. Only purchase a home if you can afford to pay a full interest and principal payment every month. The consequences of purchasing more home than you can afford can be serious.
An interest-only loan may be right for you if you have a fluctuating income and need the flexibility of paying interest-only when you are strapped for cash. Consultants and other professionals love interest only loans for this reason.
Additionally, an interest-only loan is great for people who want to invest the money that would have otherwise been paid toward principal into a higher-yielding investment. For this to succeed, your return on investment must exceed the mortgage interest rate on your interest-only loan.
Common Interest-Only Loan Myths
Myth #1 - Interest only loans don't require mortgage insurance
Interest-only loans having a down-payment of 20% or less require mortgage insurance in many cases. Some interest only loans are insured by the lender as opposed to a traditional mortgage insurance company. This means that you will pay for the insurance, but it will come in the form of a slightly higher interest rate. Make sure you ask the lender how your loan is being insured.
Myth #2 - Interest-Only Loans amortize faster than regular loans
Interest-only loans amortize no faster than a traditional loan. There is no magic connected to amortizing an interest-only loan. A borrower who takes an interest-only option but decides to make the full payment instead, will amortize their loan in exactly the same way as the borrower who chooses a traditional mortgage loan.
Do YOU qualify for an Interest-Only Loan?
Did you know that most people can easily qualify for a mortgage loan? Although the interest-only option is not available to everyone, it is unlikely you will be turned down for a mortgage altogether. Remember, mortgage lenders are in the business of saying YES. We don't make money unless we say YES.
Let us say YES to you today by filling out FREE, Secure 24-Hour Online Approval Form. It's fast, easy and 100% secure. We promptly let you know if you qualify for an interest-only loan. We'll also be happy to help you decide if an interest-only loan is right for you.
Take advantage of this FREE offer by visiting my website NOW!
P.S. - Don't forget that we are in the business of saying YES. We can't wait to shake your hand and tell you 'Congratulations, You're Approved!'.
3 Reasons Your Home Didn't Sell and what to do about it
Statistics say that, last year, almost half the homes listed for sale never actually sold!
Industry insiders have recently studied the reasons for this phenomenon and present to you this no-cost report explaining the reasons you home might not have sold and, more importantly, what you can do about it!
Here is a countdown of the Top 3 Reasons Your Home Likely Did Not Sell and a Solution for each:
3 Reason Your Home Didn't Sell - Condition / Appearance
Now, don't get offended by the title of Reason #3. If you want your home to sell, you need to put pride aside and seriously consider this. Just because you think your home is spectacular and in showcase condition, doesn't necessarily mean the buyers who toured your home agree.
It may be the paint colors you are using. It could be tarnished fixtures, stains in your driveway or overgrown landscaping. There are 25+ Ways you could make your home look and present better. Why not review this checklist of 25 items and see if there is anything you might have overlooked.
Below, we will offer you a no-cost 25-Point Checklist. Review it and see if there is anything you could be doing better the next time around.
2 Reason Your Home Didn't Sell - The Price
Price is one of the most important items to consider when selling your home. If your home is priced too high, your home will languish on the market for months. If the price is too low, you will lose thousands of dollars in hard-earned equity needlessly.
Remember - It's not what your house is worth, but what someone is willing to pay. You need to gauge market conditions properly for your area, and then set a bit lower than the average. If you price your house according to the market, it's not likely to sell quickly. That's because the top 10% or 20% of houses with the best prices are selling each month in this area. If your house isn't in that lower 20% range, then it isn't likely to sell as quickly.
1 Reason Your Home Didn't Sell - Marketing Woes
Your Real Estate Agent is in charge of marketing your home. If they did not do this job properly, maybe you need to be seeking a new agent. Why continue working with someone who cannot provide results?
You need an innovative and unique marketing plan to help sell your home fast and for top dollar. Here are three things that 'good' Real Estate Agents do for their clients:
1.) They purchase advertising space in the local Homes & Land Magazine and then place an ad for your home in their pre-purchased space. The ad should be descriptive and contain a flattering photo of your home.
2.) They list your home in the local MLS Computer Database. This is the database that Realtors® use to find the perfect home for their buyers. If your home is not listed here, you are in trouble. & vbCrLf &
3.) They make themselves available to answer calls and promptly get back to buyers with courteous, professional answers.
NOW AVAILABLE! - NO-COST HOME SELLER 'POWER PACKAGE'!
Attract Buyers to Your Home in Droves using our system
Find a Top Realtor in this area using our no-cost 'Agent Locator Service'
Receive the No-Cost Report, 25 Ways TO Make Your Home Sell.FAST!
Get Pre-approved for your next home loan, at no cost!
Find your next home without the hassle, using our No-Cost 'VIP Home Buyer Program'
Learn how to properly price your home and factor in market conditions
Why are we offering all of this at no cost? Simple - if we do a good job helping you prepare, maybe we can earn your mortgage business. We are sure willing to try. Are you willing to give us a try? If so, please fill out our 'NO-COST 'Home Seller Power Package' Request Form Below. We'll promptly send you the no-cost Report. This is 100% NO-COST, and there is NO Obligation.
Don't wait! Visit my website and request your no-cost package now!