Question: I read your LIBORMANIA column with great interest. What especially intrigued me is the interest only feature on a mortgage program with such a low rate. I have a similar situation in that I have a 5/1 Adjustable Rate with a balance of $300,000 at six percent. My current principal and interest (P&I) payment is $1,799. Is it true that if I refinanced to a LIBOR ARM at 3.50 percent my interest only payment would only be $875? It seems unbelievable. I"ve got three kids and a very small college fund. This program would allow me to save an additional $924 per month. Do you think this is a wise decision? Also, everybody keeps saying that the stock market will eventually go up again and now is the time to start investing. I would like your thoughts on this. Thanks.
Many novice real estate investors readily call a roofer when the roof is leaking or a contractor to renovate a bath or kitchen, but they often view real estate agents as superfluous overhead. They focus on the agent commissions they have to pay, while overlooking the value that an agent can add to their investment business. As a real estate agent, you can expand your business by proving yourself indispensable to investors who purchase distressed properties.
Each year about 40 percent of all home sales involve first-time buyers, which means that 60 percent of all transactions involve people who have bought and financed before. Surely buyers, sellers, and brokers must wonder why it is that with each home sale buyers must be repeatedly qualified and why debt from one home cannot be transported to another.