4% fixed for 7 years on Home Refinances under $400,000!!

A friend and I were talking today. He has a small business in the beach area and was telling me he was cut on his credit line - no warning, just cut. He said he used the credit line for his business and depended on having that line of credit if he needed it. This is a common experience for all the past couple of years. Happened to an associate with terrific credit and almost 80% equity in her properties, and happened to my partner who has less equity and more expenses. It was a straight across the board move by the banks. For the small business owner, there went our cushion.

I suggested getting a refinance on his house; he had at least 65% equity. I called a great Mortgage Broker - Gilbert Ramos. The quote was exceptional! 4% on an adjustable 30 year mortgage under $410,000, fixed for 7 years. On a 30 year adjustable fixed for 5 years 3.75%! Wow!~ That's cheap $$$! HELOC's (Home Equity Line's of Credit) are at 5% or more these days; so if you need that "cushion" the refi is the way to go!

Then the issue of "fixed for 7 years" came up... "what if the market changes?" my friend asked. Many have this question when they look at these rates - and the first reaction is fear. Watching the market it a normal process for those with mulitple properties and investments. It doesn't shoot up to 8% overnight, it is normally a gradual increase. I was telling him, and I'll tell you - 30 years in this business and everyone I know who has multiple properties and makes money work for them - Fixed rate loans for 5 or 7 years all the way. If the market goes up, they call their lender and fix the rate. Normally not too difficult if you have a relationship with a lender. Often times they'll call you about products you might be interested in, or if they see rates going up quickly. Bottom line, you're never stuck with that mortgage.

As I said yesterday; it's exceptional pricing right now on properties and rates. "The best moves in any market are not made at bottom, because no one knows when bottom truly is - but the best moves are made as it's going back up. You know the bottom is behind you, and money is to be made on the way up. If you can do some real estate investing, do it now. We are in the cycle of moving up - now is the optimum time.

More tomorrow... V