The mortgage program that is in great demand is the Click here , which has many investors buying properties all over the the country in the hot market. Today many investors can`t show their income based on IRS tax returns, W2`s or 1099`s, due the world crises of Covid 19. This crises caused a break in hundreds of millions income and has created an enormous expense for the unemployment divisions of each state.
The baby boomer generation were taught that having savings is good and that it should be put safely in the bank. Even if the bank became insolvent our money is insured by the FDIC up to $100,000. So all we had to do, if we were lucky enough to have more money than that was to open account at another bank. Only problem is the interest that the banks pay on savings or even certificates of deposits is, at most 5.5% AND is taxable. Many of these baby boomers are retired now and don`t have a job so they rely in the Click here programs.
The key to these No Doc Investment Loans for Investment Property programs is to pay a little extra each month after you acquire a mortgage, since the rates will be 2 – 3 percentage points higher due to uncertain risks. An alternative to Stocks, Bonds and Mutual Funds could be just putting the funds you may otherwise invest in these methods and pay down your mortgage. So in other words each month pay your mortgage payment plus some extra. Maybe a portion of the amount you invest each month or maybe the whole investment, the decision is yours.
A Little Extra – The Savings Math
Here`s an example of what would happen if you invested in the mortgage, you owe on your home. Let`s use a new fixed rate mortgage with a starting balance of $100,000 amortized over 30 years at 7%. By paying an extra $25 per month we would pay this mortgage off 39 months early. Check my math, but I calculate that would save us 39 (month) x $665.31 (monthly payment amount) = $25,947 minus 321 months that we made extra payments each of $25 or a total of $8,025 would leave us $17,992 in savings growth. $17,992 divided by 321 months is an average of $55.83 a month in tax free growth. Annualized that amount for a yearly average of $669.96. Divide that by our yearly investment of $300 ($25/month) and we get a whopping average return of 223%.
If you were to further invest a little time,online, you could even shave another few thousand dollars. Go ahead and invest in all the fancy funds Wall Street has to offer, but at least consider investing in your own mortgage.
Especially in this hot real estate market, which is a hedge against inflation.