Investment Mortgages

Even with the real estate market currently experiencing some turbulence, investment mortgages can still be a great way to grow your wealth and make a safe, long-term investment. With the stock market stuck in a cycle of volatility, real estate offers savvy investors a very smart and stable alternative. In addition, because housing prices in many areas are still at record lows, investors can get much more value for their money, a benefit that will likely pay big dividends in the long run. Although the standards for some investment mortgages have tightened somewhat in the aftermath of the economic crisis, a wide range of investment mortgage products are still available, particularly to lenders with healthy credit and a track record of real estate investment. In some cases, banks may require a higher interest rate and a more substantial down payment in order to approve an investment mortgage. However, the advantages in terms of rental income, cash flow, and tax deductions may override the out-of-pocket costs associated with applying for and initiating an investment mortgage. Check with a qualified financial advisor to determine whether an investment mortgage is the right move for you.

Fast Facts

  • The industry standard set by mortgage giant Fannie Mae requires a 15% down payment for most investment mortgages, but some lenders have upped this requirement to 20%. Ask around to find out if you can get a better rate.

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