Buyers who qualify for traditional financing through a bank are in a rush to get loans locked in at current low rates before rates go up again.  For buyers with flawed credit histories, owner financed properties will probably be their only option.  For many buyers who bought their properties via owner financing a few years back refinancing may now be an option if they have enough equity in their home this in spite of some bad marks on their credit records.

“The recent spike in mortgage rates has some homeowners scrambling to save thousands over the next several years by locking in a rate today. Many homeowners are just now recuperating from seeing their home values plummet in the past, to finally seeing positive equity, and are concerned they won’t be eligible to refinance into a low-rate mortgage before rates begin climbing higher.

The Fed lowered short term rates several years ago to near zero in an effort to revive the economy and now that we are seeing a recovery it’s expected we will begin to see rates escalate to normal levels. Historically, rates on 30 year loans are usually between 5.50%-7.25% and higher.”¹

There is good news though, lenders are eager to refinance home loans into low interest mortgages while they are still available. New programs have been made to assist homeowners with low to negative equity. However, not all lenders are equal and not all lenders have access to these loan programs.  Your best bet is to check with several lenders for the best rates and terms.

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If you currently own a real estate note and are in need of immediate cash, we would like an opportunity to bid on and possibly BUY YOUR NOTE!  With over 20 years experience in the private note industry, our experienced staff is available to provide you with a quick quote and help make it easy for you to get the most for your note.  Visit us today at www.notebuyingusa.com or contact us at 1-877-399-1211.  If you are considering offering owner financing when you sell your property, please click here to receive your free copy of “10 Critical Steps to Creating a Sellable Note”.

This information is intended to be used as a general guide.  It is not intended to constitute legal advice and is not a substitute for the advice of an attorney.  While every effort has been taken to present the information accurately, this document may not be infallible.  No warranty is made that these materials are current, complete, accurate, or suitable for any particular purpose.  You should seek advice from your attorney before proceeding with any real estate transaction.

Source(s):

1. Smart Homeowners are locking in Ultralow Rates Before Fed Hike, no author, November 7, 2013, http://www.smartlifeweeekly.com/finance/mortgage-interest-rates-have-no-where-to-go-but-up?t202id=63644&c1=tres3&c2=ts9&c3=a1&t202kw , Retrieved November 13, 2013.