What to Say When Someone Asks You to Cosign their Mortgage?

Agreeing to co-sign someone’s mortgage is not a light decision. Holding the responsibility of cosigning a mortgage is no small feat– you are placing a commitment to some else’s financial obligation. However, in this day and age, the act of cosigning a mortgage can be seen as becoming old and outdated. Traditionally used to allow hopeful homeowners to obtain larger …

Loan-to-Value (LTVs) what does it mean?

The loan-to-value ratio (LTV ratio) is a value that reveals the mortgage amount in comparison to the actual value of the property. It gives an assessment of lending risk for lenders or banks to examine in approving a mortgage. What does this mean? Usually the higher the LTV the higher the risk is to the lender; as a result, it …

What is a Pre-payment Penalty? Should you Have to Pay It?

  A pre-payment penalty is a fee that establishes the terms in which a mortgage lender or a bank has with the borrower that puts re strictions on the amount and time that the borrower can pay off that loan. It is originally used by lenders to ensure a certain amount of interest payments per month, for example, taking 80% …

To Fix-and-Flip or not to Fix-and-Flip

When deciding to fix-and-flip a property, it can turn out to be a great investment or an unnerving headache. For a successful fix-and-flip, it is essential to be fast and quickly but accurately decide the worth of a property.  Here are the main factors to consider when determining the potential of a fix-and-flip property: the location, the outside, and the …

The Math Behind a Successful Fix-and-Flip

Partnering with Refresh Funding, in August 2015, the homeowner bought a Miami Gardens  property for $117,075. It took 148 days and investing $20,162 in rehabilitation cost. The investor paid 12% to borrow for 150 days for a total debt service cost of $153,081. With Refresh Funding supplying a $81,952.50 hard money loan, the investor was able to sell the property …