Oh the times, they are a changing! (to be referenced later, stay tuned)
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I wanted to talk about the good and the bad sides to lease to own homes. Lease to own is also called LTO, RTO, rent to own, lease to own. But essentially what you’re doing is you are leasing to own a home much like you lease to own a car. The good sides of lease to own I’ve gone through in a lot of my other videos.
The great side to it is, if you can’t buy today for any reason, such as bad credit, you don’t have enough down payment, you have too much debt compared to your income ratio. Maybe you just started your own business, things of that nature where you simply need to, what I like to call, buy yourself time, then lease to own is a fantastic situation.
Now, why not just rent? Why lease to own? Well, a couple of reasons. If you’re going to lease to own it sets you on a program. It holds you accountable. Where a lot of people will rent for 10 years before actually taking the time to save up the down payment, or actively wanting to fix their credit, with lease to own you’re on a schedule. You need to fix things in order to buy your home at the end of the lease. It creates great accountability, as well as, depending on the investor that you’re working with, a great system in place to help you save down payment or pay down debt or what have you. That’s definitely a great side.
The other side is, when you rent you always have that temporary feeling as well as that, “I have to ask mom or dad if I can hang a picture in my room” feeling. When you lease to own your own home, if you want to do renovations, if you want to get rid of the carpet and put in laminate floors, if you want to put in a new vanity in the bathroom, if you want to knock down a wall, you can do that because it’s your house and you don’t have to ask anybody about it. If you want to hang a picture in your house, put as many nails in the walls as you want.
It’s your security. It’s your property. If you hurt the value of the home, that’s to your own detriment. Obviously, you want to do things to preserve it, take care of it. It’s your house. It gives you that sense of ownership. Lease to own, there’s a lot of great reasons on why you want to do that.
Now, why are some negative reasons on why you don’t want to do it? Well actually, that’s not the right way of putting it. Some ugly sides to the lease to own world, that is, simply you not doing your due diligence or teaming up with somebody who is very much out for themselves. Lease to own in concept is fantastic, and if you do it with the right person, that’s a great situation.
I make sure I very carefully screen people that I refer you to to make sure that they are above board, and that they’re on the level, and that they’re really doing this because they want a good, safe investment, while at the same time they’re helping out you and helping you to achieve your goals.
Now, what are some negative things that can be done, and what can you do about it to prevent these things from happening to you? Well, the number one thing that happens is that you’ll get into a home that’s, let’s say, $600,000, but you never actually got pre qualified for $600,000. When the two year lease is up, guess what? You only qualify for a $400,000 place. What do you do? Nothing. You honestly can’t do anything.
You now cannot fulfill the lease contract, which means you lose your initial down payment that you gave the investor. The investor gets to keep it. You lose all of your rent credits that you’ve accumulated throughout the two year or three year lease. They get to keep the house. You basically walk away with nothing, where, for the last two or three years you’ve just been paying inflated rent. That’s it. You obviously don’t want that to happen to you.
Now, what can you do to prevent that situation? Get pre approved. Don’t get pre approved by somebody who’s never even heard of or done anything with lease to own. You need to work with somebody who has worked with lease to own, understands the fundamentals of it, the different options that can be added to a contract, and most importantly, how long you’re going to need, realistically, to fix your situation so that you can be able to afford the place that you get into at the end of your lease term.
Obviously, if you’re working with a crooked investor, then they really don’t want you to qualify. They’ll put you into a $1 million home. You’ll think they’re the greatest things ever until your lease comes up and you can’t afford it. Because now they keep the house, they keep your rent credits and they keep your down payment. That seems like a really good situation for them. If you’re working with someone who’s on the level, there’ll be numerous things they’re going to make you do. For one, get pre approved, and get pre approved by someone that they trust. They’re going to mandate that. If you’re working with someone and they don’t mandate that you get pre approved, that’s not a good thing.
Another thing that’s optional and not always offered, but I would definitely ask for it, is an option to extend or an option to purchase early in your contract.
For example, if you’re really, really good, you manage to fix whatever was negative in a shorter amount of time than what your original lease term was. It would be great for you to be able to buy early, because that means you get to buy it at a lower price. An option to purchase early would be great to have in your contract. Likewise, though, if maybe something doesn’t get fixed in time or you just, for whatever reason, want to keep doing the lease for one more year, an option to extend would also be a great part to leave into the lease as well.
Those are some things you can ask to see if they’re on the level. Other questions you need to ask the investor is, “Have you done this before?” [chuckles] You won’t believe how many people have never, ever done this before, but they can talk a real big game. Now, just because it’s someone’s first time doesn’t mean you shouldn’t use them. What you need to do is ask, “Who is your mentor?” And, “Can I meet them?”
Because a lot of people are looking to do this. It is a great investment option. It’s safer, for the most part, other than just doing a buy and hold, meaning a rental property and all other kinds of things. It might be their first time. It doesn’t mean that they’re not a good person to deal with, but you want to know who is their mentor and who’s going to be handling these contracts. Make sure you ask those questions.
As well, if this is someone who has done it before, I want you to ask, “How many have you done before?” And, “How many have you done in the past that have come to full fruition, who have actually purchased out the lease and bought their home at the end?” And, “Of those who have not purchased, why was it and was anything done to try and help this happen?” Ask those kinds of questions. Get pre approved. Look out for yourself, and look into lease to own. It is a great option, but only if you do it with the right person, all right.
If you have any questions about this, I’m Leah Coss. I am with The Mortgage Centre. I’m a Canadian mortgage broker. I cannot help you people in the US. I’m sorry.
If you have any questions, leave a comment down below, email me, call me. Don’t forget to subscribe to my videos. Give a thumbs up if you like this post. Other than that, I will talk to you later.
Hi, everybody. It’s Rowan Smith from the Mortgage Center. I want to talk today specifically about lines of credit. More importantly I want to talk about lines of credit that you want to keep but you maybe want to renegotiate maybe the mortgage in front of it. This is something that comes up from time to time.
Let me give you an example. Suppose you had a $100,000 mortgage on your $500,000 home. But you also had a $100,000 line of credit from a different institution. When you’re first mortgage comes up for renewal and you want to renew it, your choice is to stay with that institution or replace that mortgage amount dollar for dollar from another institution.
Now, to do that you need the permission of the line of credit company that’s issued that line of credit. They have to grant, what’s called a grant priority or offer priority agreement allowing the new mortgagor to go in front of them on title.
Now, this becomes problematic when someone just wants to renew but they want to move from one bank to another bank. In that case you often can’t, it’s not as simple as just a renewal. And unless you’re keeping every single feature of the mortgage the same, the amortization, the remaining amortization and what not, then it can be switched over.
But if you want to get an extra five grand for some small renovations or you want to borrow some money to pay off a car loan or what not, in order to do that you have to get rid of that line of credit. That doesn’t mean that you can’t set up a new one with the new institution, it just means that that existing one will have to be collapsed as part of it.
If you have any questions about this or you want to know if there’s a way to work around in your situation, because there are examples where you can do the mortgage without redoing the line of credit, please give me a call. It’s Rowan Smith from the Mortgage Center.
Hi, everyone. Rowan Smith from the Mortgage Center. I got a call today about a client who wanted to do some renovations on the home when they bought it. And they said to me, “But I don’t have the money for doing the renovations I’d like it built into mortgage. Is that possible?” Yes, there’s a few different ways to do it. One of the most common programs is “Purchase plus Improvements”. And under that program, the way it works is, you borrow money.
I’m going to use a nice, round example, you buy a $100,000 home, you put five percent down, that’s $5000. You have a $95,000 mortgage, but you want an extra $10,000 to do some renovations.
The way that it works is you have to first get a quote from a contractor that explains what the work he’s going to be doing and the cost that it’s going to be to get that work done. You’re going to present that when you do your mortgage application.
So, when you write the offer you need to get a contractor in there right away to that quote because your mortgage broker is going to need it in order to submit it with your deal to the bank to ask that extra $10,000. You won’t be able to get it afterwards, so you have to do it as part of the transaction.
So, they send in the application, see, and the bank looks at it and makes sure that the work that they’re doing is appropriate for that price. And if they approve it then the full amount of the mortgage gets advanced to the lawyers office.
But you don’t get your $10,000 to do the renovations. You have to do the renovations first, provide receipts, provide proof of the work that’s done, often times they’ll require an appraisal to go through to make sure that the work is in fact done. And then they’ll release the dollars to you.
So, if you’re doing a big ren, you wanted $40,000 or something like that, you can still do it, but you have to have the means to come up with the cash to pay trades and materials in advance and then the mortgage money will come to you later.
So, yes, you can use the line of credit where you can borrow money from family and friends but you have to have a way to get the work done first and then they release the funds. Now, is there times when you can get around this? Yes, but generally you need 20 percent or more down payment or set up a structure like that.
If you’re someone in either of those situations with less than 20 percent down or more than 20 percent down and you want money for renovations while you’re buying the home or after give me a call. From the Mortgage Center I’m Rowan Smith.
We’re at 2011 right now and it wasn’t that long ago that you were able to get a 40 year amortization. Then it got cut down to 35 years. From there it’s now being cut down to 30 years, but I still get the question all the time, “Can I get higher than a 30 year amortization? I heard a rumour that I can.” The quick answer to this is yes, it is possible to get a higher than 30 year amortization for a mortgage, but the other part to that is it is not available at every lender. There is some government law that you need to understand first before you start asking for exceptions like that.
Now the first thing to lay out is that the government has set a mandate that if you put less than 20 percent down on the purchase of your property, or if you have less than 20 percent down in your home if you’re refinancing, you must have a cap of 30 years for an amortization. You cannot go any higher than that. That’s simply to safeguard you so that we don’t have any kind of economic collapses again, like we just experienced. Because of that 30 years is your maximum. No ifs, ands or butts. You can’t pay anyone off. You can’t talk to a friend and get a good deal. 30 years is your max because it’s a government set law. OK?
Now, that said, if you are putting more than 20 percent down, and if you go to one of the very few lenders out there who are still offering this, you can still get 35 years. In fact there’s still maybe one or two lenders that will still let you do 40 year amortization. Depending on the size of the property that you’re getting or trying to afford, you may need that extra amortization. But, if you’re going to buy something, not much, you must put at least 20 percent down payment.
So, that’s it. If you’re looking to buy a house at less than 20 percent down, which most of you are, don’t even ask about amortization; you are capped at 30 years. OK? But if you’re putting more than 20 percent down exceptions can be made, but chances are your bank won’t be able to do it for you. There are just, truly, one to two lenders out there we’ll say three or four lenders that will let you go to 35 years, and then one or two that will let you do 40 years. To try and fish them out yourself is going to be really difficult, so I do recommend going to a broker or coming to me.
If you have any questions about amortization let me know. Leah Cross with the Mortgage Centre. Don’t forget to subscribe that way you won’t miss any videos. As well, leave a comment down below. Email or call me if you have any questions. Other than that give a thumbs up if you like the video and it was helpful to you. I guess that’s it for now. Good luck with the amortization and I will talk to you later.
Everybody, Rowan Smith from the Mortgage Centre. I’m here today to talk again abut a topic that seems very popular among my blogheads, which is former marijuana grow ops. Can you finance them, or how to finance them? The answer is, “Yes, you can,” and the way to do it is this. There’s typically going to be extra underwriting that’s going to be required. Not all banks are going to be willing to do that…
So what are those extra things that are going to be needed? Well, you’re going to need, first and foremost, an air quality test. Now, an air quality test is when an environmental firm, preferably one by the name of Medallion Homes, goes into the premises and takes an air sampling in an area where the grow op was and an area where the grow op wasn’t, so they have an ambient and a control comparison and they provide you with a breakdown or a readout of mold content or chemical content, if any.
Now, in most cases, this comes back fine. But if there had been significant moisture problems, it may not come back so good. In those cases, they’re going to need some additional remediation before the bank will fix it or will finance it, rather.
So, first things first, you need an air quality sample. Now, I said use Medallion Homes. Why? Just generally, that’s the firm that most of the places around me in Vancouver, that’s who they want to do it. There’s also Pacific Environmental that’s accepted by a couple of them. You want to stick with Medallion Homes where possible because it will give you the maximum choice of lenders.
Now, which lenders are they that are going to actually do this? Are they some high rate lenders? Absolutely not. There are credit unions and charter banks that will do it. Some of them simply will not look at your deal if it’s a former grow op under any circumstances. That’s the reality of the banks. They can choose to lend when they want to.
So first, air quality. Second, you’re probably going to need a full appraisal. Not every time, but in most cases, they want to make sure that the market value of the home has not adversely suffered as a result of it being a former grow op. Because there is a stigma that’s attached to it.
Lastly, you’re going to want to have something from the city that confirms that either A, occupancy is still in place or the occupancy permit has been reissued. Or C, that there’s a comfort letter from the city that says the property is conforming to all bylaws. So what that letter is saying is, “Yes, we know it was a grow op, but the current owner has taken the steps to get the property back to the level where it’s safe for human habitation.”
Now, most grow ops actually aren’t that bad. They’re not always like they show on the news with black mold and chemicals running rampant through the property. Oftentimes, it’s confined to a single room. So in those circumstances, they still need the same level of due diligence. It doesn’t matter if it was 1 plant or 500 plants that was in that grow op. If it’s a busted grow op, the stigma will remain until the home is bulldozed that it was a former marijuana grow op.
Now, if you or somebody you know is looking to finance one and having problems getting financing, that doesn’t mean it’s impossible. It just means you’re going to need the three things air quality, appraisal and a comfort letter from the city or the occupancy permit or what have you.
Now, that varies from municipality to municipality. Not all municipalities pull the occupancy permit, others do. There are different types of programs out there. So if you’re in Surrey, or you’re in Mission, or you’re in Vancouver or Coquitlam, the rules will change. It’s important to be dealing with somebody who knows what the rules are in that unique market and can get a bank that will finance it as well. For the Mortgage Centre, I’m Rowan Smith.
In this video, I look at who is still offering 35 or 40 year amortizations and explain some recent changes in the market place.
Video Transcript:
Hi, everybody. It’s Rowan Smith from the Mortgage Center. It’s been a while since my last post and I wanted to provide an update on a couple of things that I get constant questions about in our market place.
Back in April when the changes the government handed down took effect it got rid of what most people thought would be all of the 35 and 40 year amortizations. So the question is, is a 35 or 40 year amortization still available? Short answer, yes. Now, the longer answer is a little more complicated…
For example, who is it that offers that? Well, if you’re dealing with TD Canada Trust, Scotiabank or one of the large chartered banks, they’re not going to be able to offer you an amortization of 35 to 40 years. There are a couple of credit unions that will do it and there’s a lot of non banks, for instance, broker channel lenders they will also do a 35 or even a 40 year amortization.
So, what’s the criteria? First, you need 20 percent down. The reason for this is, a bank, once they put 20 percent down, cuts CMHC or mortgage insure out of the equation for most part. In that circumstance they can take on as much risk as they want, more they can offer, whatever product they want, because the government isn’t involved in that transaction any longer.
So, if you want to get a 40 year amortization or a 35 year amortization you can do so if you have 20 percent down.
Now, why would you do that? You could be in your fifties thinking, “Well, I’m not going to live until I’m 90 years old.” It’s not about that, it’s about cash flow. Many times people that opt to take a 35 or 40 year mortgage are doing so on an investment property or they want to have a property that’s positively cash flow each month or perhaps it’s because there’s a sick situation in life and they need to minimize the minimum “out of pocket” each month.
So, if you were somebody you know needs a 35 to 40 year amortization, I can help them, please send them my way. It’s Rowan Smith from the Mortgage Center
Hi every one, it’s Leah Coss with the Mortgage Centre and I want to talk about Property Transfer Tax, because there are lot of people who are confused about what it is, why they have to pay, when they don’t have to pay it, how much to pay and things on that nature. I’m just going to quickly run through on the generalities of Property Transfer Tax here in British Columbia, Canada.
Property Transfer Tax, how much do you have to pay? Well, it’s one percent of the first 200,000, so two grand, and two percent of every hundred thousand after that. If you’re buying a $400,000 place, that’s $6,000 if you do the math, OK? So, a bit of a chunk of cash for some of you. When do you not have to pay it? Never. You always have to pay it unless you’re a first time homebuyer.
There are some very specific conditions to that, even first time home buyers have to pay Property Transfer Tax sometimes. Here are the situations where they have to. At this point in time, if you buy a house over $425,000 as a first time homebuyer, you will have to pay all of, or at minimum, a portion of Property Transfer Tax. Basically, it’s anything above 425,000, you have to pay Property Transfer Tax, but its sliding scale between 425 and 450.
If you buy a house over 450, you’re paying full amount of Property Transfer Tax. If you buy it between 425 and 450, it’s like a sliding scale amount and it’s all confusing, so don’t anymore worry about that. If you purchase a house under 425 and you’re a first time homebuyer, and you never had your name on the title of a home here in Canada, then you will not have to pay Property Transfer Tax that one time. OK?
But… [handclap] If you’re a first time home buyer, and you’re buying a rental property, because you maybe still live at home with Mom, or you’re still renting because it’s a good situation, you have to pay Property Transfer Tax on that rental property, but when you go to buy you’re first owner occupied property, now your first time homebuyer kicks in.
Those are the main situations where you’re going have to pay it, how much you’re going to have to pay. The reason for Property Transfer Tax is simply the [laughs] taking your name off title and putting it on to a new title. That’s the general speaking of what Property Transfer Tax pays for, I’m sure they do a lot more behind the scenes, a little pricey, in my opinion.
I think the 425 threshold for first time homebuyers needs to be upped, because in Vancouver, that hardly buys you a condo anymore. If you have questions about Property Transfer Tax, or any other closing cost, definitely check out my other videos first, I’ve got lots of closing cost videos out there for you. If you have more questions, feel welcome to give me a call.
If you have a situation where maybe it’s you and a friend, or you and your spouse, who are buying, and one of you is a first time homebuyer and the other one isn’t. You want to figure a way not have to pay as much Property Transfer Tax, I can tell you some more specifics on those options for you, so definitely give me a call. I’m Leah Coss with the Mortgage Centre, a Canadian mortgage broker, I cannot help you people in the US, I am very sorry. Check out a mortgage broker in your area.
If you any questions, leave a comment, send an email, give me a call, don’t forget to subscribe. Those are my dogs freaking out in the background, it’s not someone ripping someone’s throat apart. [laughs] Quiet guys. Anyway, don’t forget to subscribe, so you don’t miss this videos, and hopefully I can help you out. Leah Coss from the Mortgage Centre, I’ll talk to you soon.
Hi, everyone, it’s Leah Coss with the Mortgage Center. And I wanted to talk really quickly about buying out a province here in Canada. Maybe you’re looking to buy a second home in a different province, maybe you’re looking to get a rental property somewhere else. If you’re going to do that, I just need to let you know, so that you’ve got some expectations set. Chances are, you’re going to need two lawyers, which means two lawyer bills, when you’re closing that deal.
The reason being is that if you’re buying, say you live in BC and you’re buying in Ontario, you’ll need a lawyer there in Ontario to do all the title stuff, the title swapping, all the land transfer stuff, and whatever the notaries and lawyers do with their notary and lawyer duties, they need to do that over there concerning the property.
But the notary has a huge responsibility to make sure that you are who you say you are. They’re going to need ID, they’re going to need signatures, they’re going to need you to fully understand all the paperwork that you’re signing. So, therefore, you need to be in person somewhere. You can’t just sign this and scan it and FedEx it over to them.
That means that you’re going to need a local lawyer wherever you live as well. And they’re going to be the ones who are going to go through your paperwork with you, confirm that you are who you say you are, have you sign and understand everything. Then they’ve got to ship those documents over, they have to have originals. So, you have to leave extra time as well. You can’t just fax these. You need to FedEx them over to the other lawyer, over in Ontario or wherever the other province is, so that they can put all that paperwork together. OK?
So, the things you need to note is, you need extra time for closing, make sure nothing’s too much of a crunch, because you need to get original documents somewhere. And you’re going to need two lawyers, OK? There’s not really any way around that unless you want to fly to that province, or maybe you happen to be visiting there at the time of closing, then you can sign the paperwork in person with the same lawyer. But other than that, you’re probably going to need two.
So, if you have any questions about this, or buying out of province or any other mortgage questions, for that matter, feel welcome to give me a call. Leah Coss, with the Mortgage Center, I’m a Canadian mortgage broker, and hopefully I’ll be talking to you soon.
I want to talk about unauthorized basement suites. I had a call from a client he found me online and they were asking, “Hey, the city has called me” or written a letter or however they communicated with him, “and said, we’re coming by. We’re coming by on this date and we’re going to be inspecting your home.” Now, he was like, “I’m not really sure why they’re coming by,” but he had a sneaky suspicion it’s probably because he has an unauthorized suite in his home.
Now, what is an unauthorized suite? Simply that. The suite is not registered with the city. You’re not paying additional taxes. It isn’t meeting the requirements of the city for having separate living dwelling. Therefore, if the city comes by and inspects it and finds it, they will make you rip it out.
His question was exactly that. What are the repercussions? He depends on that income, so what can he do to keep the suite? Is he going to be handed a big bill for a penalty or a fine? Are they going to let him keep it, things of that nature.
Well, the first thing you need to do if you have an unauthorized suite or are looking to purchase a place with an unauthorized suite is go to the city and just find out, what are the requirements that you need to have a separate suite. Now, in a lot of cities you don’t need anything.
The only difference between having an authorized and an unauthorized suite is simply that you’re paying higher property taxes. Now, a lot of you are going, ” I’m not going to pay higher property taxes.” Well, you know what? You need to because, as taxpayers, if you don’t pay for them, the rest of us are.
Why the city wants you to pay higher taxes is because you have two separate dwellings, which means two separate families producing twice the amount of garbage. Now the garbage service is having to work twice as hard, and you’re not paying for that. The same with water, things of that nature, that you pay to the city part of your taxes. But, by having two separate dwellings, you need to be paying more. Hopefully, that makes sense to you. In a lot of cases, if the city’s going to come by and do a checkup on your suite, and you don’t want that suite getting ripped out, then, guess what? You’re going to have to pay those higher property taxes.
But for some cities, for example Vancouver, there are somewhat a few more hoops that you’re going to need to jump through. For example, if you’re going to have a separate living dwelling in the basement or as a duplex or something like that, you’re going to need a certain amount of sprinklers in certain places. You’re going to need windows. You’re going to need a separate entrance and different requirements like that. Definitely go to your city and see what other requirements there are there.
But if the city does find out that you have an unauthorized suite, then they can make it so that you have to rip it out. What are they going to do to make you rip it out? The kitchen. [chuckles] Without a kitchen in there, a basement suite is going to be hard to rent out.
To avoid this altogether, or to at least take the steps of finding out what you need to do to make it authorized, just go to your city. Find out what needs to happen. Are there sprinkler requirements, window requirements? How much more of property taxes would you have to pay? Because if they do inspect, you’re going to have to rip it out anyway. If you rely on that income, that could put you into big, big trouble. As well, it’s important to know that not all lenders, such as Scotiabank and such, will lend on homes with unauthorized suites. They don’t want anything to do with them if you’re relying on that money in the basement suite.
If you have any questions about getting funding on basement suite properties, or if the city is coming through and you just want some advice, feel welcome to give me a call.
Give me a thumbs up on this video if it was helpful to you. Don’t forget to subscribe, and if you have any questions or comments, please leave them down below.
Otherwise, this is Leah Coss. I am a Canadian mortgage broker. I cannot help you people in the US, I’m sorry. But if you have any questions, let me know. Otherwise, I’ll talk to you soon.
35 and 40 Year Mortgages – Recent Updates
In this video, I look at who is still offering 35 or 40 year amortizations and explain some recent changes in the market place.
Video Transcript:
Hi, everybody. It’s Rowan Smith from the Mortgage Center. It’s been a while since my last post and I wanted to provide an update on a couple of things that I get constant questions about in our market place.
Back in April when the changes the government handed down took effect it got rid of what most people thought would be all of the 35 and 40 year amortizations. So the question is, is a 35 or 40 year amortization still available? Short answer, yes. Now, the longer answer is a little more complicated…
For example, who is it that offers that? Well, if you’re dealing with TD Canada Trust, Scotiabank or one of the large chartered banks, they’re not going to be able to offer you an amortization of 35 to 40 years. There are a couple of credit unions that will do it and there’s a lot of non banks, for instance, broker channel lenders they will also do a 35 or even a 40 year amortization.
So, what’s the criteria? First, you need 20 percent down. The reason for this is, a bank, once they put 20 percent down, cuts CMHC or mortgage insure out of the equation for most part. In that circumstance they can take on as much risk as they want, more they can offer, whatever product they want, because the government isn’t involved in that transaction any longer.
So, if you want to get a 40 year amortization or a 35 year amortization you can do so if you have 20 percent down.
Now, why would you do that? You could be in your fifties thinking, “Well, I’m not going to live until I’m 90 years old.” It’s not about that, it’s about cash flow. Many times people that opt to take a 35 or 40 year mortgage are doing so on an investment property or they want to have a property that’s positively cash flow each month or perhaps it’s because there’s a sick situation in life and they need to minimize the minimum “out of pocket” each month.
So, if you were somebody you know needs a 35 to 40 year amortization, I can help them, please send them my way. It’s Rowan Smith from the Mortgage Center