Current Interest Rates are Great for Homeowners and This Group

by : Mario Joyner

The current mortgage interest rates are good for buyers and homeowners refinancing. The timing is creating new opportunities for investors large and small to acquire rental property at rates and prices they haven't seen in many years. Conventional 30-year fixed rates for homeowners with good credit looking to refinance owner occupied single family homes dropped even lower this week and buyers are benefiting from current interest rates.

Many investors have fewer available options for financing since many lenders went out of business and the remaining lenders money dried up considerably in late 2007 during the credit crunch. There were many investors who had been waiting for the right moment to pick a rental property-especially in markets where there's lots of short-sale and REO property to choose from at lower prices.

Investors will be happy to know that although money did dry up and get expensive, here is current update of where investor money is priced right now: Available as low as 5.75 percent for 30-year fixed with a 10 percent down payment and full documentation, provided the loan amount is under $417,000, which is Fannie Mae.

Underwriting rules for investors has changed some and impact loan approval, one of the changes is if an applicant already multiple rental units. Generally banks get will not finance a property if an investor is already carrying 10 or more other properties. They are concerned about rental income taking a hit if there are unexpected or prolonged vacancies.

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