Real Estate Quotes

If you want the best money-saving mortgage, it often comes from a monoline lender. They offer the best exit and renewal terms. They get their business from one place only: mortgage brokers. Monoline lenders typically want prime properties or plum clients with a 700-plus credit score. If you can qualify for a monoline mortgage based on market fitness, your credit, income, and investment strategy, then you'll be better off. [2018] - Angela Calla

We always recommend you take the longest amortization possible, because the amortization doesn't actually dictate the duration of your mortgage payments; that duration is determined by how you set up your payments. If you have a long amortization, you can always revert back to the minimum payment. This helps you avoid accumulating outside debt, and you can qualify for something else if you need to. If you want to buy a rental, but you've just renewed your principal residence mortgage at 15 years, you won't qualify. But if you had your principal on a 30-year term, it would allow much more flexibility. [2018] - Angela Calla

If you are purchasing with 25% down payment vs. 20%, you may get a lower rate. 30% might get you a bit lower yet. The lowest insurable rates are usually available with 35% or greater down payment, however with some lenders you may need as much as 40%. Additional down payment beyond 35-40% will not get you a further discount on rate. [2018] - Paul Meredith

The cost of an uninsurable mortgage can be as much as 25 basis point (0.25%) higher than that of an insurable mortgage, or even higher. I've seen the difference as high as 50 basis points. [2018] - Paul Meredith

A 10 year fixed mortgage typically carries a rate of around 1% higher than the 5 year fixed. I do think that 10 year fixed terms are not the right choice for most people. It's because nobody expects to break their mortgage mid-term, but it happens all the time, and sometimes we are forced to. [2018] - Paul Meredith

Average household size is used to help determine the proper unit mix. If you lean that the average size is 3.7 persons per household, then pursuing a building with a mix of studio and one-bedroom apartments won't work. [2017] - Bryan M. Chavis

Mortgage interest rates help to evaluate and determine market cycles. If rates are at an all-time low, more people will be qualifying for mortgages and are therefore less likely to be in the rental market. When the money supply is tight and lenders are cautious and interest rates are high, that's when you're in the best position as a rental property owner. And when rates are low but lending standards are tight for the middle-income demographic, this demographic will typically be forced to rent. [2017] - Bryan M. Chavis

You have to think like your prospective tenants, and their needs may be different from your needs. Some of their needs may be: Close to highways and public transportation (bus lines, subways, etc.); Close to retail and shopping; Close to large employment centers. [2017] - Bryan M. Chavis

Rent must cover at least these items: mortgage payments, taxes, insurance, interest payments, estimated vacancy loss (at least 5 percent if you have more than one rental property), utilities provided by landlord, collection expenses, legal & accounting fees and advertising [2017] - Bryan M. Chavis

A landlord/property manager must not collect a deposit from more than one applicant at a time for the same rental unit. It is good practice to collect other applications for the same unit in case the first applicant does not qualify, but do not collect more than one deposit. [2017] - Bryan M. Chavis

I recommend raising rents at the end of each lease term. Even if only a few dollars, it gets your tenant accustomed to the rents being raised. You should bring the rents up to market rate at this time. To find out what market rents are in your area, do a market survey. Many find it helpful to use a tool such as Google or Rentometer. [2017] - Bryan M. Chavis

General rules of thumb regarding move-out procedure: Ordinarily you can charge for replacing ruined/stained/torn carpet, replacing chipped tile, replacing broken blinds/drapes, fixing damaged furniture, pest control for flea infestation, patching holes in walls, replacing broken doorknobs, replacing torn/missing window glass and cleaning for an excessively dirty kitchen/bathroom. You typically should not charge for replacement of an item that could be repaired. If a resident has lived in a residence for more than one year, the need for new paint is normal wear and tear and should not be charged for. [2017] - Bryan M. Chavis

Major city newspapers tend to publish a comparison of the prevailing mortgage rates by institution in the real estate section of the weekend newspaper. This will save you a lot of research time. Also check with mortgage brokers in your community. They frequently publish a list of current comparative rates and will send a copy to you free upon request. [2017] - Calum Ross

If you are buying a condominium as your principal residence, you generally don't pay any fees, other than the appraisal fee to the mortgage broker. [2017] - Calum Ross

There are many factors you have to decide on before finalizing your mortgage decision. The key factors are amortization, term of the mortgage, open or closed mortgage, interest rate, payment schedules, prepayment privilege, and assumability. [2017] - Calum Ross

There are many payment schedule options available in the marketplace, including weekly, biweekly (every two weeks), monthly, semi-annually, annually, and other variations. Generally, the more frequently you make payments, the lower the amount of interest that you will be paying. [2017] - Calum Ross

You may have a mortgage which, though called a closed mortgage, is in fact partly open and partly closed, permitting prepayments at certain stages and in a certain manner, but not at other times. [2017] - Calum Ross

There is a lingering societal belief that interest rates have to go up, but the reality is that they will stay low for a very long time. Interest rates will be kept low so long as debt levels remain historically high. Even when interest rates aren't historically low, it is almost always a good idea to borrow to invest. [2017] - Calum Ross

A HELOC (home equity line of credit) allows a homeowner with significant equity access to that dormant equity. The homeowner can do what they want with the money. The most financially literate and sophisticated people have always borrowed against home equity to invest. [2017] - Calum Ross

If you're investing in major markets, there is no more space to build at the same time as there is a net migration into the cities. Simple supply and demand stipulates that prices will remain robust (taking into account the inevitable corrections) for the foreseeable future. [2017] - Calum Ross