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3 Step Guide to Becoming a Work At Home Mom (or dad)
There is a ton of information out there about being a work at home mom, so how do you decide where to start? Well, let me tell you, owning your own business is the answer. I’ve spent 10 years and thousands of dollars searching for the right...
Marketing Your Home Business in Just 30 Minutes a Week
It’s all the rage. It’s what everyone is talking about. It is unquestionably the most effective form of marketing available to home based business owners. It costs almost nothing, it takes about 30 minutes a week, and it makes your business stand...
The benefits of using home business leads
Home business leads are those people interested in making money
by working at home. Either they have filled out a form of one of
the lead generation companies or affirmed they want to pursue
work at home business on an Internet bulletin board....
Vending Machines and the Lure of the Instant Home Based Business
If you are considering vending machines as a home based business here are three very brief facts about vending. 1) Vending machines will start to earn revenue for your home based business almost immediately. 2) A brand new, high quality machine...
What If A Franchise Was Run Like a Typical Home Based Business and Residual Income?
Have you ever wondered how a Franchise would do if run like a typical home business? This might give you some idea. There is something that is long as I live I will never understand. Well I suppose actually there are several things, however right...
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How to utilize your cash investment in your home.
Have you ever noticed how hard it can be to get to the equity in your home?
Recently I had a client come to my office who had quite a bit of equity in their home. I’m not talking about $50,000 or even $200k, I’m talking about over $250k. I was asked to get 80% out of their home so that they could re-invest the monies elsewhere.
From an application stand point this person had no reason not to qualify. They had great credit scores, tons of assets and the loan-to-value on the home was nothing to be concerned about. The only problem we came across was that they were business owners and had taken a loss on their taxes the year before therefore we could not show any income documentation.
Lenders have ways of protecting their interest through limiting cash out and verifying their investments. Although my client had everything with exception to the income documentation we were limited to getting $250k out of their home. Locked into a good rate, we moved forward and closed the deal that limited us with getting the cash out.
We then went looking for a lender that would be
more willing to give us the cash out but knew it would be at a higher rate due to the potential for risk. The rate for the rest of the money turned out to be about 1% higher.
This got me thinking about utilizing my home as an investment:
1.How much does the bank pay you when you pay down your loan, yet they maintain their right to take your property until you have paid your entire debt?
2.What happens when you find yourself in a difficult situation and need to pay less than the monthly payment?
3.What happens when you need to get to the money you have diligently worked so hard to pay down? You have to qualify, yet you own the asset.
My recommendation is to maintain a way to get to your investment. I am not so much recommending that you take out the money as you at least set up a Line of Credit so that you can get to the money should you need it.
About the Author
Angela Talent, Your Mortgage Advisor is a Loan Agent with Allied Capital Loans in Folsom, CA. Her insight is priceless as she has helped many homeowners with their financing and asset management.
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