Mortgage & Commercial Lending News.

In 2010, and in response to the financial crisis that we now know as the Great Recession, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The law places strict regulations on lenders and banks in an effort to protect consumers and prevent another all-out economic recession. It was this act that outlined a set of rules around higher priced vs. high cost mortgage rates.

There are plenty of investment options in the market. Stocks, mutual funds, bonds, annuities, exchange-traded funds, and real estate are just some of them. Of all these options, you are probably interested in real estate, as it is one of the most lucrative options. It can generate substantial profits. However, some people think that investing in real estate is mainly for high-net-worth individuals. In reality, it can also work for smaller investors. “Flipping homes” is an attractive and accessible investment option for almost any type of investor.

While buying a house, choosing a private lender over a full-fledged financial institute for a mortgage loan is a great option. One of the many benefits of doing so is that private lenders approve loans much quicker than other financial institutions, such as banks.

Best of all, the majority of hard money lenders do not look into a borrower's credit history. Private lending is a flexible process that makes it easier for almost everyone to own a home or invest in real estate.

It takes hard work to save enough money and build your credit to buy your home. As a homeowner, you will need to make your mortgage payments in full and on time every month. Let’s face it, you made a financial commitment to your lender/ finance institution to pay on time and in full each month.

Sadly, this is the mother of all mistakes made by people trying to save a few hundred dollars when they are dealing with a commercial or residential hard money loan. As a hard-money lender, I’ve seen genuinely heart-breaking tragedies.

The most frequently asked question of Houston hard money lenders is why would a borrower finance or refinance a property with a hard money lender.

Si escucha el término “refinanciar” puede ser que no esté muy seguro de qué significa. En términos simples: refinanciar significa financiar otra vez; típicamente mediante un nuevo préstamo a una menor tasa, a un plazo más corto o a un interés más bajo. Al refinanciar, el propietario de una vivienda tiene acceso a un nuevo préstamo el cual reemplaza su préstamo actual, o en algunos casos, si la propiedad está “libre de gravámenes”, un refinanciamiento le permite aprovechar el valor líquido de la vivienda.

When you hear the term “refinance” you may ask yourself what this means. In simple terms to refinance means to finance again, typically with a new loan at a lower rate, term or interest. A homeowner has access to a new loan which replaces the exiting loan, or in some cases, the homeowner may own the property “free and clear” so a refinance will allow them to tap into the home’s equity.

¿Está listo para convertirse en el propietario de una casa por primera vez? ¿Tiene ahorrado suficiente dinero para dar el enganche? ¿Ha calculado cómo financiar la compra? La meta número uno de la mayoría de las personas es tener una casa y las posibilidades de convertirse en dueño de una vivienda por primera vez mejoran tanto cuanto más informado esté.

Are you ready to own your first home? Do you have enough money saved for a down payment? Have you figured out how to finance the purchase? Owning a home is the number one goal for most people, and the more informed you are, the better chances you’ll have to get into the right first home for you.