HOW TO BENEFIT FROM HOME’S EQUITY
During Corona pandemic, when many businesses suffered, mortgage industry, as well as the real estate, was booming. The interest rates were historically low and everyone could get rates around 3%-4%. As it often happens, the pendulum moved into opposite direction and in spite of the speculation, no one really knows when the interest rates will start going down again.
Meanwhile people continued to spend money on their credit cards which have very high interest rates and had other needs for money. And since values of properties continued to go up and no one wanted to lose low rates, there is the proliferation of the lines of credit (L/C) and second mortgages. In the past, the source of these products were major commercial banks. However, some of them stopped offering L/C, while others became very conservative and limited loan to value (LTV).
As a response to the need, the Wall Street investors through mortgage bankers used the opportunity and started to offer L/C up to 90 percent LTV. Even for the self-employees – by using their business cash flow as the source of income. Some lenders offer L/C for the rental properties. And then for the borrowers at the advanced age who cannot get conventional 2nd mortgages, there are Reverse Mortgage Seconds.
During our recent staff meeting, we discussed some of the opportunities with Debra Kidder Steere from Newfi Wholesale. Follow this link to watch a piece of our conversation posted this morning onto my YouTube channel.
Always feel free to contact me on the phone or by email as showing below.
I promise to help!
Manny Kagan,
President,
Pacific Bay Financial Corporation
(415) 225-7920; || [email protected]
NMLS #205637
DRE #00824602