Amortized loan - A loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan.
An Investment Real Estate Strategy Unknown To Most Is A Negative Amortization Loan
By Mark Barnes
If you want to make the most of your personal or investment real estate, you should consider a negative amortization loan. Mortgage amortization is basically mortgage balance reduction. Consequently, when a mortgage has negative amortization, the loan balance not only is not reduced, it actually grows. So, why should you consider this? Simple. It is a great way to invest money from real estate someplace else.
This is a very aggressive and fairly unknown approach to real estate investment. In fact, it is a method of investing that does not have to involve real estate, in usual way we consider real estate investing. In other words, a negative amortization loan can give you money to invest in areas other than real estate, and this is how many people use this type of loan.
Let’s assume your mortgage has a conventional loan that calls for a monthly payment of $800. If you refinance to a negative amortization loan, your payment may go down to $400 or less, leaving you $400 or more each month to invest. Now, keep in mind, your mortgage balance is actually increasing with this loan, because you are not paying the required interest, and it is being added to your principal balance.
However, imagine having an extra $5,000 to $6,000 each year to put into a high-yield stock or mutual fund. After five to ten years, this could turn into a very lucrative strategy.
Remember, it is important to consult with a financial advisor, before attempting this loan and this strategy. You might also consult with the wealth-building system, Winning the Mortgage Game.
Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com and learn more about his wealth-building system. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com
Article Source: http://EzineArticles.com/
iSNARE Free Articles Directory
ATLANTA, Jan. 6, 2009 -- Premier Exhibitions, Inc. , a major developer of touring museum quality exhibitions, today announced its financial results for the third quarter and nine months ended November 30, 2008. [ read more]
Global Payments Inc. today announced results for its fiscal second quarter ended November 30, 2008. For the second quarter, revenues grew 30 percent to US$401.1 million compared to US$308.8 million in the prior year. [ read more]
Global Payments Inc. today announced results for its fiscal second quarter ended November 30, 2008. For the second quarter, revenues grew 30 percent to $401.1 million compared to $308.8 million in the prior year. [ read more]
Capmark Finance Inc. (Capmark Finance) originated $3,900,000 in fixed-rate financing through its Freddie Mac program for the acquisition of Dominion Apartments, a recently constructed multifamily property in Ocean Springs, Miss. [ read more]
Fort Worth’s FIRM817 has been selected to design the new American Institute of Architects’ Fort Worth Center for Architecture in the city’s Cultural District. [ read more]
Several more are planned for the Dallas-Fort Worth market. [ read more]
A total of 1,542,538 families living in rented houses face the bleak prospect of being burdened by higher lease payment if the Rent Control Law will not be extended after it expired last Dec. 3l. [ read more]
One of the most important factors in buying a house is securing a mortgage that works well for your individual situation. Yet, there's a lot of misinformation about mortgages. [ read more]
From her snug one-bedroom condominium near San Francisco State University, Lea Azucena has watched family members struggle against foreclosure. The mortgage meltdown has claimed the financial stability of countless other first-time home buyers, but Azucena,... [ read more]
"The avoidance of taxes is the only intellectual pursuit that carries any reward." [ read more]
|
Copyright (c) 2004 Yahoo! Inc. All rights reserved. |
|