Mortgage and Refinance: A Guide for Beginners

A property whether it is a single-family or a multifamily home is a an investment for any real estate investor. One way to leverage it is by refinancing. Refinancing allows real estate investors to lower the rate and increase the returns or cash-out money from the appreciation of the property. This allows them to have more money to potentially buy more properties, make more money in the long term.

Should you use Fannie Mae and Freddie Mac?

Fannie Mae and Freddie Mac are both registered mortgage loan companies in the United States. They buy mortgages from banks, allowing them to keep on having money to lend out to different people.

Both are implementing the adverse market refinance fee. It is their way of saying that they need to make more money to be able to offset the probability of losses that are going to occur from people who will not be able to pay their mortgages. Also, it is, unfortunately, be implemented in all banks. These banks are going to have to pay 0.5% adverse market fees.

Every single bank and mortgage broker will have to determine if the amounts or fees are being passed on to the consumer. It’ll be really important if you’re looking to refinance, you should start working on it early because the timeline to refinance can anywhere be between 30 days to 60 days. You need to start working on it early, just in case anything happens, you can avoid having to pay any additional fees on something that you want to be able to do regardless.

Andrew Marquis of Guaranteed Rate can help you

We suggest Andrew Marquis of Guaranteed Rate. He is a wonderful mortgage broker that understands investors and owning of investment properties, he owns properties and he really understands both the numbers and can help guide you through the process to be able to make sure that you avoid the adverse market fee.

If you or anyone else you know is looking for a proactive property manager to help guide you through these types of things, to help you avoid fees, and be able to know the market and not just take care of your property, please think of Green Ocean Property Management, you get more than a property manager, you get peace of mind.