Last week we noted that interest rates had dropped dramatically in the last few weeks. In fact, our Mortgage company, Legacy Mortgage, was quoting 2.875% 30 year fixed rates.
Well, those rates are still holding, making it possible for you to save considerably on the cost of your home loan. For example, one of my clients called me to ask whether her 3.75% interest rate could be reduced. The answer was “definitely yes!” She has a refinance in process with our lender at this time.
Another client called me and is changing his investment plan due to the very low rates available. He owns several rental properties with substantial equity. Originally, we considered doing a tax deferred exchange on one of the properties to allow him to leverage up into a larger property. Well, after looking at his situation in view of the very low interest rates currently available, it became clear that there might be a better alternative. He can simply refinance his existing properties to take some funds from them to use to purchase his next properties. Interest rates are so low that these funds can be taken from these properties and still leave him in the position of having the rent payments cover his mortgage and other costs. A side benefit is that prior to the refinancing, his rentals produced a positive cash flow, which is taxable as regular income. The result is a win-win situation. He gets to keep his existing properties, purchase another income producing property, and reduce his income tax bill!
There may also be many opportunities for you or your family members to benefit from our current incredibly low interest rates. We’d love the opportunity to help you analyze your real estate situation and find ways to improve your portfolio.
As always, please call 949-500-6365, email Frank@FrankDiLauro.com, Instagram FrankandSusan.