How would I be able to convince someone to obtain a Mortgage loan?
Posted in Personal Finance on 08/16/2010 01:27 pm by admin
JESS asked:
What kind of information should I tell them to convince them to obtain a loan? Please Professionals with a lot of experience would be helpful and i would really appreciate it.
Jacob
What kind of information should I tell them to convince them to obtain a loan? Please Professionals with a lot of experience would be helpful and i would really appreciate it.
Jacob
08/17/2010 at 12:16 pm
Allison
Why, do they owe you money?
08/17/2010 at 4:55 pm
Ellen
I am suspicious of ulterior motives. You sound like you would gain from this. You should not convince someone to obtain a mortgage loan. That is their own decision.
But if you want them to make an informed decision on the types of mortages available, i suggest the mortgage professor’s website by Jack Guttentag. He is also one of “The Experts” at Yahoo Finance as well. His website has a lot of calculators for all sorts of situations.
Yahoo finance and MSN money also have rent vs own articles and cnnmoney.com has stocks vs real estate articles which sound appropriate as well for this “someone.”
Getting a mortgage is a big deal. Please do not pressure this person into doing something they don’t want to do or shouldn’t do.
08/19/2010 at 12:45 pm
Lydia
If this person owns a home a home and are trying to cash out the refinance is tax free and taking cash out of their home will give the homeowner an advantage over the bank having all the equity in case there is some type of catastrophe like Katrina or 1994 earthquake in Los Angeles where some areas plummetted 50% within a few months.
If they are purchasing a home real estate is the best leverage in the planet and the interest paid on the mortgage is a write off (consult your accountant). They will also be able to enjoy the rewards of appreciation which has made certain people millionaires.
If they are purchasing investment property every expense for the most part is a write-off as well as yearly depreciation for 27.5 years on residential property (consult your accountant)
The mortgage market is arguably the most liquid market in the US backed up by US treasuries as well as GNMA government bonds and there is many financing products out there to get someone into a home so it is somewhat like using “OPM” other people’s money, but you do have to be wise and purchase in the right areas.