Have you heard that interests are high?
I want you to consider "perspective."
This morning's interest rates were hovering at 7% for an average 30-year fixed mortgage. Indeed, different loan products can adjust at other times- they may go up or down.
There are ways to adjust that interest rate by doing certain things.
Most other agents either need to learn or will not lead you in the right direction. So instead, they will say, "Just refinance."
Work with an agent you can trust. If they start talking about things that seem too good to be true - RUN! Because it's NOT in your interest. 🐎
Please watch to learn MORE about what can help you and your clients adjust the interest rate.
Real Estate Training
Indeed, different loan products can adjust that at various times as it may go up or go down.
There are ways to adjust that interest rates by doing things such as like:
Adjustable Rate Mortgage - This could be an option depending on your situation
Negative Amortized Loan - I wouldn't recommend this though << DO NOT DO THIS!
Rent to Own - I have a corporate buyer who will buy a property on your behalf and then rent it to you, with you having the option to buy. (This option protects you from rising interest rates by letting you have the choice to buy - or not, in the future).
What is an Adjustable-Rate Mortgage?
Adjustable-Rate Mortgage (ARM) is a mortgage having a variable interest rate. For some time, the initial interest rate is set. The interest rate then charged on the unpaid balance is reset annually or weekly.
Interest rates today are at 7%. Does that seem high?
We would say yes, but we have a perspective of what we're comparing it to.
An excellent example of this is the townhome I bought in Purple Sage Drive years ago. I refinanced it to 6 1/2%. I was jumping up and down for joy, okay, because I was refinancing from 8%.
Since 1971, the average interest rates have been 8.16%. So, comparing it to yesterday, the interest rates have increased by an obscene percentage.
Yet, we're better than average today if you compare it historically.
Now, you'll hear people say this, and I will say the same thing, but I want to carry on the conversation so that you won't hear the ages and the blunders tell you.
They're going to tell you that you can go and lock in your interest rate today, and if interest rates are lower, you can refinance, and that's a true statement.
We hear all the elections, and everyone's going to move out, or everyone's going to move in. But what drives the local economy is the contractors with the government, like Booz Allen Hamilton, SAIC, and Northrop Grumman.
But, what's left out is the cost of refinancing because it will cost you some money to refinance.
So, 100% yes! You can lock into today's rates, and if they go down, you can refinance. It will cost you some money when you do that, though, and when you refinance, you're resetting the date you're paying.
What is Amortization?
Amortization is a method of paying off the debt throughout the course of the loan in equal installments that contain different amounts of interest and principal.
It requires the borrower to make specified, regular payments that go toward both the principal and interest.
Any remaining funds are used to lower the principal amount and pay off the interest charge for the time period.
An amortization loan's principal payment increases as the interest component are lower.
An amortization schedule outlines how much of your monthly payment will be allocated to interest and principal over the course of the loan's entire term.
How to calculate Amortized Loan
You'll need to divide your annual interest rate by 12
For example:
If your Annual Interest Rate is 3%, then your monthly interest rate will be 0.25%
0.03 annual interest rate / 12 months = 0.25 monthly interest rate
If you refinance seven years into the mortgage, you're refinancing, and let's say you get a new 30-year loan.
Essentially, what you did was your front end, and you mainly paid interest over those first seven years, and now you're starting again from zero, and you're going to end up mainly paying interest up front as well.
The interest rates are now lower than average over the last 40-plus years and seem relatively stable.
Prices have gone up as they had years ago.
Will there be peaks and valleys through time?
Yes. But in real estate, time heals all wounds.
If this is all confusing to you, I understand. Let me know if you would like to chat about YOUR options, and we can hop onto a quick phone call to discuss - I promise I will leave you with clear answers.
If you're considering moving to Northern Virginia, I'd love to talk with you. You can hit me up at 📧: Dan@greetingsvirginia.com. You can also shoot me a message here at 📱:703-346-2776.
Just send me a text. I'll respond and love to be able to have a conversation with you to share the techniques that I'm using to generate wealth the same way that you can.
Our Team:
Dan Rochon
John Root
Zainab Fahim
John Turner
Bryant Bryson
Damian Dickerson
Talk to you soon.
P.S. You may also want to check our active listing here.
If you're interested to learn more about Real Estate Investing or tips and strategies about Real Estate, you can reach me at 703-346-2776 or send me an email at Dan@greetingsvirginia.com. We will be more than happy to help you.
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