Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Sell Your Home and Invest at the Same Time
I continue to see the same For Sale signs in my neighborhood. The houses just aren't selling. If you are considering selling or have a home on the market that is not moving, it's time to think about financing the sale yourself. A good friend of mine bought a new home three months ago, and he has watched his old house sit unsold, while he's struggled paying two mortgages. I finally convinced him to get past his fears and finance the sale of his old home.
He's thrilled that he won't have to make two house payments any longer, and he doesn't have to worry about that empty house. Here are a few basic tips I gave him that helped make the transaction a whole lot smoother. Be sure you have a well-written land contract that spells out every detail of the transaction. This is, in essence, your purchase agreement.
Get yourself a title company and have your title agent file the land contract with the county. This makes it all legal. Be sure to get a good down payment. Five percent would be great, but if the buyer can't afford this, be sure to get a few thousand dollars. This will give the buyer a little equity and make the move to a conventional refinance loan much easier. Be sure the terms are very specific.
Just like any mortgage, there should be an interest rate on the loan, a 30-year term, with a balloon payment. This means the payment is spread over 30 years, which makes it easier for the buyer, but you will get all of your money in a specified time, say 2-7 years. It's always a good idea to talk to your buyer about credit worthiness. You are extending credit, with the understanding that the buyer will go to a bank for a conventional loan to pay you off. That bank will want a decent borrower.
So, it will help your buyer and you to educate him a bit on putting himself in better position to get the loan. Make sure he pays you with a check, so the bank can trace payments. Discuss credit cards and other monthly debt and be sure he knows to pay everything on time.
Finally, explain that a couple of months worth of payments in savings (cash reserves) will be required to secure his loan, so he should plan ahead and start putting away each month. Other assets are also acceptable, such as retirement benefits, stocks, and forms of money that are easily accessible. Finally, instruct your buyer to do everything possible to maintain the house and even to improve it, as this will help with increasing the home's value, which will be a vital part of refinancing into a conventional loan.
These are just a few of the important steps to seller financing.
Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com. Get his free mortgage finance course at http://www.winningthemortgagegame.com
Find vintage posters and collectible posters at www.OfficeJax.Has.It
MORE RESOURCES updated Mon. August / 10 / 2020
Don't let mortgage rates distract you. You should also consider this when refinancing - Fox Business
How much does it cost to refinance? Bankrate.com
How often can you refinance your house? It depends on your finances Business Insider
Refi Rates Today, July 24, 2020 | Rates slide Bankrate.com
Is It Already Time To Refinance Again? Mortgage News Daily
Current Refinance Rates, July 15, 2020 | Rates slide Bankrate.com
Rocket’s Refinance-Fueled Blastoff Might Not Last The Wall Street Journal
What is the cheapest way to borrow money? Fox Business
You might have a tough time getting a 'jumbo mortgage' during pandemic. Here's what to expect - CNBC
How to Refinance a Jumbo Loan Credible News
Don't make these mortgage refinancing mistakes | Business | swoknews.com The Lawton Constitution
What Is A No-Closing-Cost Mortgage? Bankrate.com
Mortgage industry faces 'tsunami' of refinancing deals Phoenix Business Journal
Experts Say Now Is The Time To Refinance Your Mortgage, Though Process Might Take Longer Than Normal - CBS Los Angeles
Experts Say Now Is The Time To Refinance Your Mortgage, Though Process Might Take Longer Than Normal CBS Los Angeles
Is M&T Bank a Buy? Nasdaq
Wells Fargo expands nonconforming jumbo refi loan criteria American Banker
Your Money: The 30-year gorilla in the room TwinCities.com-Pioneer Press
The Tax Breaks for Homes That Help You Now The Wall Street Journal
Mortgage refinance: Everything you need to know Fox Business
Compare mortgage, refinance, insurance, CD rates Bankrate.com
Is Now the Right Time to Purchase a Home? The Motley Fool
How to get the best mortgage refinance rates Fox Business
How to refinance your mortgage Fox Business
10 things to know before refinancing your mortgage Fox Business
Is now the best time to refinance your mortgage? Fox Business
When should you refinance your mortgage? Fox Business
Mortgage refinance applications spike 79% as homeowners rush to take advantage of lower rates - CNBC
SimpleNexus' New eClosing feature enables mortgage lenders to conduct speedy and convenient hybrid closings of purchase and refinance loans - eNewsChannels
SimpleNexus' New eClosing feature enables mortgage lenders to conduct speedy and convenient hybrid closings of purchase and refinance loans eNewsChannels
Record number of borrowers can now save on a mortgage refinance as rates drop from coronavirus fears - CNBC
Record number of borrowers can now save on a mortgage refinance as rates drop from coronavirus fears CNBC
How does mortgage refinancing work? Bankrate.com
Should I refinance my house? Mortgage rates drop to 50-year low as coronavirus spreads across the U.S. — and the world - MarketWatch
Should I refinance my house? Mortgage rates drop to 50-year low as coronavirus spreads across the U.S. — and the world MarketWatch
With Mortgage Rates So Low, Getting a Floating Rate Mortgage Might Seem Crazy. Here's Why I Did It Anyway - MONEY
With Mortgage Rates So Low, Getting a Floating Rate Mortgage Might Seem Crazy. Here's Why I Did It Anyway MONEY
I refinanced my mortgage during COVID-19, and thanks to low interest rates I'll save about $50000 - Business Insider
I refinanced my mortgage during COVID-19, and thanks to low interest rates I'll save about $50000 Business Insider
Rushing to Refinance Your Mortgage: 6 Tips and What to Avoid The New York Times
The impact of the coronavirus on mortgage refinancings Brookings Institution
The basics of no-closing cost mortgage refinancing Fox Business