How Colorado Mortgage Group can Help Property Investors
Property investment provides business minded people with a good source of financial security from the equity and monthly income that occurs each month from rentals. For other investors, a home may be bought for a fraction of its value and after a bit of work, sold to gain a profit. Whatever the purpose of the property, know that real estate is a lucrative business venture and investment properties have proven to be a reliable source of income. However, not many people have the amount of cash lying around that would be needed to buy an investment property. For these folks, a property investment loan is the answer. Many mortgage groups, financing institutions and banks extend investment property loans to real estate investors. This loan is basically meant for buying property for profit making purposes. It is suited for individuals with the main goal of making a profit from real estate development. Properties mostly featured in this type of investment are apartments, condos, multi or single-family housing units.
Types of Loans
Commercial Property Loans are designed for developments involving more than five housing units and other commercial investments like shopping malls. These loans may be used to refinance or purchase apartments, shopping complexes, office buildings and any other commercial space. Residential Property Mortgages are meant for housing projects that involve four units or less. The units can house either individuals or large families. These loans follow the same procedures and qualification criteria as conventional home loans. Because of the significant difference in the loan types, most mortgage groups will always have separate departments to take care of these two investment property credits.
Rates, Rates and More Rates
Investment property loan providers have loans with different types of interest rates; it is always advisable for investors to work with a trusted lender to ensure the best possible rates on their loans. There are two types of interest rates available for investment property loans. The first is the fixed rate loan. These loans have a rate that does not fluctuate the life of the loan. Adjustable Rates are loans with changing monthly interest rates as per the existing economic situations. These rates can go up or down so it is advised to have a strong financial footing before entering in to this type of loan. As a property investor, your goal is to make a profit on the property you buy. Your terms and interest rate on your loan will have a direct impact on your bottom line. Ensure that you are working with a trusted lender to get the best possible deal.