5 Financial Terms Every Real Estate Investor Should Know

The success of your real estate ventures depends on your ability to navigate the financial world. Learn these terms to make it easier to understand what's going on with your real estate investments. Cash Flow Contrary to popular belief, cash flow isn't just the amount of liquid assets you have available. Your cash and unused lines of credit are an essential indicator of your ability to complete projects and pay the cost of ongoing operations. However, these factors don't tell the whole financial story. Your actual cash flow is the difference between your gross income and your financial obligations. You…
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What Makes Up A PITI Mortgage Payment?

Many mortgage payments are made up of four parts, called PITI. PITI is an acronym that stands for principal, interest, tax, and insurance. It's important to understand PITI because it is the real number you need to use in order to find out how much mortgage you can afford to pay each month. One of the biggest mistakes first-time homebuyers make is using only the principal plus interest figure to calculate how much they'll be paying every month for their mortgage. Then, when the lender comes back and denies them, the prospective buyer is confused. Knowing and understanding PITI will…
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6 Ways to Fight Foreclosure

Sometimes, things don't go as planned. Despite the best intentions, there are times when it's impossible for homeowners to fulfill their mortgage obligations. When your misfortune turns into a foreclosure notice, these tips will help you control the situation and realize the best outcome. Work With Your Lender Open the lines of communication with your lender to stall the foreclosure process. Call your lender and explain your predicament. Give them specific details about the nature and estimated length of your circumstances. Many lenders are willing to temporarily modify payment terms to temporarily accommodate certain hardships. Apply for a loan modification.…
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Is Now a Good Time to Cash Out Your Home Equity?

For many Americans, their home is their primary investment. The equity stored in your residence can be a source of available cash for home repairs, upgrades, or for financing the purchase of investment properties. However, few homeowners really understand the process that results in home equity.  What Is Home Equity? Your monthly mortgage payment goes towards two different amounts. The first is the interest that you pay for the loan. The other is your principal payment or the amount that counts against the initial amount that you borrowed for the purchase. Depending on the details of your loan contract, each…
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What’s Ahead For Mortgage Rates This Week – March 11h, 2019

Last week's economic news included readings on new home sales, construction spending, and housing starts. Data on building permits was released along with Labor Department reports on public and private-sector jobs and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims were also released. Construction Spending Slows as New Home Sales Rise in December Commerce Department data for December indicated less construction spending than for November. Construction spending dipped by -o.60 percent as compared to analyst expectations of a negative reading of -0.30 percent. Construction spending grew by 0.90 percent in November. Lower cash outlays for…
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