Refinance: What is it and How Does it Work?

Reading Time: < 1 minutes

  What is refinance     A refinance is when you’re going to work with either your bank or a mortgage loan originator. When you originally get a loan, they’re going to be able to borrow money. And what they’ll do is give you $100,000 and then they might charge you an interest rate. That…

Two people at a desk with calculator and papers

 

What is refinance

 

A person is using a calculator while looking at a document

 

A refinance is when you’re going to work with either your bank or a mortgage loan originator. When you originally get a loan, they’re going to be able to borrow money. And what they’ll do is give you $100,000 and then they might charge you an interest rate. That interest rate might be at a 5%. That means 5% of the loan amount each year’s paid is what they call it interest. 

 

Example of Refinance

 

So when you refinance a property, you can either rate in term and lower that rate. You might go from 5% to 4-3%, or you can cash out. You can cash out base upon equity. Equity is either build up through the pay down of your principal from each mortgage amount that you pay it down or from the value of your home and what they’ll let you do is typically borrow up to an LTV, which is a loan to value. If your property is worth a million dollars and they do a loan to value of 80%, you can borrow up to 80%, that means $800,000, so refinance is typically either to lower your rate or to cash out.

 

If you or anyone else you know, is looking for help in refinancing, please think of us, Green Ocean Property Management.

Building Long-Term Relationships with Tenants Across Multiple Properties

Building Long-Term Relationships with Tenants Across Multiple Properties

Posted in ,

Long-term tenants are invaluable to property managers for several reasons. They help reduce vacancy rates and turnover costs, provide stable rental income, maintain the property in better condition, and often generate positive word-of-mouth referrals.  However, managing tenant relationships across multiple properties presents unique challenges, such as maintaining a personal connection with tenants and ensuring consistent…

Market Shifts: Adapting Your Rent Pricing Strategy in a Changing Market

Market Shifts: Adapting Your Rent Pricing Strategy in a Changing Market

Posted in ,

The real estate market is anything but static. Just like the tides, rental markets ebb and flow in response to various economic and social factors. As a rental property owner, staying afloat in this dynamic environment requires adaptability, particularly when it comes to rent pricing. By strategically adjusting your rent prices in response to market…

The Benefits of Professional Property Management for Large Portfolios

The Benefits of Professional Property Management for Large Portfolios

Posted in , ,

Managing a large portfolio of properties is a complex task that involves juggling time constraints, ensuring compliance with various regulations, and maintaining consistent standards across multiple locations. These challenges can overwhelm property owners, making professional property management an attractive solution.   Advantages of Professional Property Management     Managing a large portfolio of properties presents…

Experience exceptional management and elevate your property with us

NARPMGreater Boston Real Estate BoardCommunty Association InstitteEqual HousingBest Property Managers Boston

Stay updated with market trends and changes

Expert knowledge and advice to help make your life as a property owner easier.