Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
As a real estate investor, investment mortgage loans can be very beneficial to you. There are a number of programs out there that make it possible for people to get a mortgage for the purpose of investing in real estate. Some of them are better than others, but they can all help you out in some way. If you are considering getting a mortgage, here are a few advantages that you can get from an investment mortgage loan.
- Use other people's money - The biggest advantage of using investment mortgage loans is that you get to use other people's money. Many financial experts have said that you should use other people's money whenever you can. When you get a mortgage, you only have to put up a certain percentage of the money for the property, but you still get to benefit from owning the whole property. You get to take advantage of appreciation in the property and you get to use it for whatever you want. This allows you to hang on to your capital and use it for other investments.
- Reasonable interest - With most mortgages, you will be able to get a very reasonable interest rate as long as you have a good credit score. When you get a low interest rate like you can with an investment mortgage, it can save you a substantial amount of money. For the cost of the loan, it is usually well worth it to get a mortgage instead of using your funds. Hang on to your cash and use it for something else.
- Easy approval - With an investment mortgage, you will usually be able to tell whether you are approved rather quickly. Most lenders have pretty cut and dry standards when it comes to approving you for an investment mortgage. You will know where you stand within a reasonable amount of time.
- Increase your reach - With the use of investment mortgages, you can increase your investment power. As you grow, you can keep buying more and more property. Most people would not be able to purchase property otherwise as it usually takes a big investment. You can keep picking up more and more property as you go. This will help build your net worth and eventually you will have all of the property paid off. You are free to do what you want with all of the property. If you had to rely on your own funds for all of this, much of it would not be possible.
Using an investment mortgage can be a great way to get involved in the real estate investment market. Many people have gained considerable amounts of wealth through the use of real estate investment. Therefore, if you are at all considering getting involved in the field, you should definitely take advantage of investment mortgages. The advantages that you will receive as a result of using them will help you in a number of ways. If you can qualify for one, it makes a lot of sense financially.
- 3 Factors that Can Negatively Affect Your Mortgage Application
- Home Equity Loans for People with Bad Credit
- FHA Eligibility with Bankruptcy and Foreclosure
- Short Selling a Rental Property
- 3 Reasons Banks Reject Short Sales
- Alternatives to Getting a 2nd Mortgage
- What Lenders Don't Reveal About Home Equity Loans
- 3 Common Short Sale Mistakes
- Second Mortgages: Advantages and Disadvantages