Refresh Lending Blog

Half of the people in the US think that the mortgage rates will take a higher peak in next one year. According to the recent survey b National Housing Survey 54% people say that mortgage rates will keep increasing for another 12 months where as rest of the people conclude that it will not rise further and stay near to its current value.
Throughout the nation, people have the different opinions about the drop or increase in the mortgage rate. When the survey covers households, only 4% expect for rates to drop.
The fact is that, from the starting of 2016, mortgage rates are dropped too much to make the home affordable to buy for US citizens. More the mortgage reduction results in lower monthly installments making it possible for consumers to buy their house instead of paying higher rents

Mortgage Rates are Dropping

The mortgage rates which were fixed from last 30 years are potentially dropping this year. This is also making the interest rates on other loans lower.
 This year seems to be a boom for homeowners to take the advantage of varying mortgage environment. Additionally, it is the great time to buy your home as the property rates are also lower than previous years. Now, due to sudden drop, you have to pay 16% less interest on the mortgage.
So, now you have to decide whether you still want to pay rent or buy your house.

People Expected Gain in 2016

 People expected the gain in home prices with the rise in mortgage this year.
According to the recent survey, more than 90% people estimated that home price would steadily increase in 2016. Although the home prices were increasing repeatedly every time form some previous years and the same was expected this year too.
 But the scenario is totally different this year! Now you can easily purchase your home at lower interest rates.

Easy Loans Services

With decreasing rates of mortgages and properties in the US, More people are in the rush to buy the home this year. Many loan schemes make your task easy with low down payment option. One of such schemes is Conventional-97, which makes you pay just 3% down payment.
There's a rush to purchase real estate this year. Builders report large numbers of buyers through their model units and purchase mortgage applications are on the rise. The people with lower credit score can utilize the FHA loan scheme with 3.5 down-payments. There are many other no down-payment or low down-payment schemes that will help you to purchase your dream house effortlessly with easy installments.
Posted in:Mortgage and tagged: mortgage rates
Posted by David Halabu on March 27th, 2017 2:33 AM

The tallest residential structure in the Western Hemisphere sits at 432 Park Avenue in New York City.

Standing at nearly 1,400 feet, there are 141 apartments for sale in this building, where the average selling price is $21 million, 10 times the price of an "average" Manhattan apartment. A representative for the building said it is over 70 percent sold, though only a few dozen of those sales have closed so far. A recent report in Real Deal indicated that there are anecdotal signs that "sales have plateaued" in the building, including the fact that the developers are dividing some of the full-floor apartments into smaller units to reach buyers interested in a lower price point and boost sales.

New York real-estate prices have recovered with a vengeance in the past year but buyers may be starting to reach their limit.

Continue reading Here

Posted in:Mortgage and tagged: LendingMortgageReal Estate
Posted by David Halabu on March 30th, 2016 2:18 PM

Fourteen years ago, the author of a series of popular personal-finance books predicted that 2016 would bring about the worst market crash in history, damaging the financial dreams of millions of baby boomers just as they started to depend on that money to fund retirement.

Broader U.S. stock markets are recovering from the worst 10-day start to a year on record. But Robert Kiyosaki  — who made that 2016 forecast in the 2002 book “Rich Dad’s Prophecy” — says the meltdown is under way, and there’s little investors can do but buy gold or silverand hope the Federal Reserve slows the slide.

Kiyosaki is convinced: The pullback he predicted is happening.

“We’re right on schedule,” he said in a recent interview with MarketWatch.

A market destined to collapse

Investors are seven years into a bull market some fear is getting a bit long in the tooth, with the Dow industrials DJIA, -0.45%  and the S&P 500 SPX, -0.64%SPX, -0.64% up 0.9% and 0.3%, in 2016. That’s after 2015 saw major U.S. indexes snap multi-year winning streaks  amid falling commodity prices, concerns about economic growth, and the Federal Reserve’s December decision to raise interest rates. 

In 2002, Kiyosaki wrote that the stock market would crash in 2016 as the first wave of baby boomers began to hit 70 1/2 in 2016 and started taking required-by-law distributions from traditional individual retirement accounts.

He still believes that: “Demography is destiny,” he said in the interview.

Continue reading Here

Posted by David Halabu on March 24th, 2016 9:24 AM

Hard money loans can be a great resource for real estate investors who need fast, reliable capital to take advantage of investment opportunities. Of course, there are certain risks associated with taking out a hard money loan. The most common risk associated with taking out a hard money loan is that lenders are entitled to foreclose on your property if you are unable to make interest payments on a loan. However, there are steps you can take to ensure that you avoid unnecessary risks in your transaction.

 

The single most important thing you can do as a borrower is to conduct your own due diligence on the lender you are considering working with. This includes speaking with the lender to get a sense of their process, track record, and their expectations of you.

 

In addition, it is crucial that you are committed to open and transparent communication with the lender you ultimately choose to work with. In order to help both parties determine the optimal funding solution for your needs, it is important to provide and properly analyze all relevant information about the property, your plans for renovation and sale of the property, as well as information about your own personal finances that may be relevant. Lenders will be happy to work with you to determine the best solution for your needs, but it is your responsibility to give the process the thought and attention it deserves.

 

At Refresh Funding, we are committed to working with you to help you find the best loan possible for your funding needs. We have years of experience working with borrowers, and understand how to work together with you in order to provide fast, efficient, and reliable financing. Contact us today to learn more about our lending programs – we look forward to working with you!

Posted in:Hard Money and tagged: LendingHard MoneyCash
Posted by David Halabu on March 22nd, 2016 10:37 AM

Merchant cash advance providers are a rapidly increasing industry who provides quick access to capital to small business owners. These money providers offer businesses payment in exchange their company’s share. Unlike a loan, merchant cash advance funding is the buy of a section of industry future credit card. In return, the merchant cash advance provider buys the right to recover a segment of the company credit card sales each month.

Benefits of taking merchant cash advance

These types of financing system provide a number of advantages. If any company needs capital in a short period of time then merchant cash advance providers are the best option.

The speed of funding: One of the major advantages of getting these cash advances is their speed of funding. This type of funds can be obtained within few days even less than a week. So if any business owner requires capital urgently for his company then merchant cash providers can be very helpful. Cash advances can also be beneficial if you have an implausible chance within a minimum time.

Availability of flexible repayment methods: The best thing about merchant cash providers is that their repayment system is flexible. There is no fixed monthly installment. Suppose you don’t get enough sales in a month then your repayment for that particular month can be decreased. In blush months, the MCA recovers a higher amount; in slant times, the MCA decreases its installment. This type of collection strategy provides the MCA to maintain the success of any business.

High Approval Rate: MCAs measures current business performance instead of credit to estimate applicants. This realistic policy makes possible for stable business to be eligible for an advance. Advance capital usually depends on the business average monthly revenue in the last year.

Easy Application Process: Merchant cash advance is not a very lengthy and complicated process from starting to end. MCA providers think about only two simple things: credit card return and how much old your business is.

Utilize Money On Your Own Way: A merchant cash advance does not put any restrictions on the utilization of money. For example, a financial company or bank may require the customer to use the money in a definite way, such as to buy any asset. On the other hand, a merchant cash advance can be used by a consumer according to his own needs.

So when a business needs a fast, safe cash combination, merchant cash advances offer a smart choice.

Posted by David Halabu on March 17th, 2016 5:00 PM

Hard Money loans are different than most traditional types of loans and financing in a number of key ways. Whereas most traditional loans focus almost exclusively on the credit-worthiness of the borrower, hard money lenders are typically most concerned with the value of the underlying property in question. The reason for this is that hard money loans are secured by the underlying property. As a result, even borrowers with lower than average credit profiles may be eligible to receive a hard money loan.

 

Still, there are a number of important factors that are important for borrowers to consider when seeking to obtain a hard money loan. The single most important thing a prospective borrower can do is to make sure he or she is able to provide the lender with all relevant information about the value of the property, the purpose of the loan, and the ways in which the borrower intends to utilize the funds.

 

Lenders will want to conduct thorough due diligence on the property itself in order to try to mitigate as many risks as possible. In addition to hiring real estate professionals to conduct an appraisal of the property, lenders will also rely on their own knowledge of the local market in assessing the value of a property.

 

Lenders will also want to see that borrowers have come up with a thorough and reasonable plan of action for utilizing the funds from the loan. Borrowers should come up with a plan for how they hope to renovate the property, how much they anticipate each part of the renovation to cost, and a reasonable estimation of how long they anticipate the renovation will take to complete. All of these estimations will help the lender to determine the After Repair Value (ARV) of the property, which in turn will help the lender decide how much they are willing to lend to the borrower to complete the project.

 

While the focus of the lender will be on the value of the underlying property and the potential profitability of the investment, lenders also consider the reliability of the borrower requesting the loan. Financial considerations will play a role in this decision, as will the borrower’s previous experience investing in real estate.

 

In conclusion, hard money loans are an excellent option for real estate investors who need funding to pursue their next fix and flip opportunity. If you are in need of funding for your next project, get in touch with Refresh Funding. We offer hard money loans in most major markets and would be happy to work with you.

Posted by David Halabu on March 15th, 2016 12:47 PM

When planning on getting involved with any financial investment, it is important to take careful consideration of the risks and benefits of the type of investment you plan on undertaking.  Below is a brief overview, which will assist you in determining whether real estate debt investing is right for your own financial goals.

 

Advantages

  1. A Diversified, Stable Source of Income:  By getting involved in debt investing, you add one more source of income to your portfolio; isolated from the dangerous fluctuations of the stock market, yet more lucrative than government bonds.  The more diverse your portfolio, the less likely you are to be negatively impacted by individual changes in the financial market. Historically, real estate debt investments are not correlated to the stock market, and therefore boast the potential to provide strong income, even if the market is particularly weak.
  2. Passive Investment:  Unlike purchasing and managing real estate directly, debt investing gives an investor a hands-off method of earning income from real estate.  There are no property management concerns for a debt investor, reducing input time and reducing liability.
  3. Collateral:  Since a real estate backed debt investment is based upon the value of real property, investments are secured by tangible assets with intrinsic value.  As such, if the borrower cannot pay off the debts, foreclosing on a property offers investors a contingency which can recover the principal, interest and potentially the legal expenses required to foreclose.

 

Disadvantages

  1. Risk of Property Foreclosure:  Debt investing carries an inherent risk that a borrower will be unable to make payments, resulting in a loss of current income for the investor, and at worst, the possibility of a time consuming and costly foreclosure.  Additionally, the foreclosure proceeds may not be enough to pay back 100% of the investment and/or the interest that was anticipated in return.
  2. Devaluation of Property:  An additional risk that applies to virtually all real estate—and therefore, all investments derived from real estate—is the deterioration of a property and a decline in its value.  This can occur due to fire, wind and storm (which can be insured).  Additionally, real estate prices can decline due to changes in the local economy where the property is located as well as global shocks to the market that might affect homeowners’ ability to finance a purchase or fear that real estate prices may be cheaper in the future.
  3. Lien Position and Priority:  While debt investing clears one of the responsibilities of direct property management, the position of the investor’s lien is extremely important to the debt investor.  If you have ever had a mortgage and/or a Home Equity Line of Credit, you may be familiar with 1st liens and 2nd liens.  The safest loans are 1st liens and because of this will pay the least amount of interest as compared to 2nd liens and other subordinate liens.  In the case of default and ultimately foreclosure, proceeds are distributed in whole to the senior lender, and then to junior lenders.

 

Posted by David Halabu on March 10th, 2016 1:29 PM

Real estate loans are attractive to many investors because they are secured by real, tangible assets. As a result, if a borrower defaults on a real estate loan, the lender is able to foreclose on the property and recoup the value of his or her principal investment.

 

There is, however, a catch: a single property might have any number of loans. If a property does have multiple loans, these loans are typically arranged in hierarchical order. This means that in the event of a default and subsequent foreclosure, the lender in the first/highest position is repaid his principal investment first. Only once the 1st lien lender is paid does the second position, or subordinated loan, get paid. Any additional lenders with more subordinated loans are repaid after that. As you can see, the further subordinated a lender’s loan is, the riskier that investment. As a result, a 1st lien loan typically carries a lower interest rate than a subordinated loan, in order to compensate for the additional risk.

 

Understanding Lien positions is an important part of any real estate debt investor’s due diligence process. 

Posted by David Halabu on March 8th, 2016 11:10 AM

It is very difficult task to find the best hard money lenders. If you are looking for a loan then it can be a headache for you. Here we provide some useful tips that are helpful to find the best hard money lenders.

Identify the Best Loan Provider

It is important for you to know that do not accept any unsuitable deal in frustration with the hard money lenders. Sometimes you get convinced by the lenders but it is essential to do online search for finding the best hard money lenders. You are paying for a loan, it is important to find the appropriate deal and keep away from the bad deals. There are many honest hard money lenders available around you that provide the best deals. Refresh Funding is one of the most trustworthy and well reputed hard money lending institutes in United States.

Time Period

You are paying some extra for the hard money loan as comparable to other affordable bank loans. If you are paying some extra then it is the duty of hard money lenders to approve the loan and give payment immediately. However many lenders take a long time period to get you funded. But the Refresh Funding will provide you the fund as soon as possible.

Less Stressful                                                                           

Approving the loan is a big headache and wastage of time because you waste your priceless time in order to fulfil the necessary documents. We know the value of time therefore Refresh Funding provide the facility to fulfil the documents by its staff members so that customer can save their time.

Resource or Non-Resource Loan

There are two types of hard money loan available: resource loan and non resource loan.

In the condition of a resource loan the hard money lenders can claim your house if you are not able to pay back them. You would be in danger if you take this type of loan.

On the other side the non-resource loan does not make it possible to take any legal action if you are not in condition to pay back. But they can reprocess your property. Therefore it will be more suitable for you.

Along with the hard money loans you also come to the phrase 'points on a loan'. In the concept of loan a point is worth 1% of the entire home loan amount, therefore one point on a $ one million is equal to $10,000. Normally the loan providing companies provide loans between the four and eight points. Hence you will never ever find any mortgage which provides one point. If you find the loan on lower points it will be beneficial for you. While searching for the loan with lower points you should keep below the five points. Otherwise it would be costly to you and you will be in danger.

Know the Terms and Conditions

Before signing up the deal makes sure that you are aware through all the terms and conditions. Is it written on the paper what the lender says? If all the terms are appropriate and the points on loan are best suited within your budget then feel free to sign the deal. Refresh Funding provides the loan on lowest points which is best in market. You are always welcome by Refresh Funding for any hard money loans.

Posted in:Hard Money and tagged: LendingHard Money
Posted by David Halabu on March 3rd, 2016 11:23 AM

Peer-to-peer lending platforms are exploding in popularity, as borrowers seek alternative financing sources and investors look for investments with favorable risk/reward profiles. Lending Club and Prosper are some of the big players in the space, offering unsecured personal loans.

 

What does it mean to offer “unsecured” loans? Put simply, an unsecured loan means that there is no underlying collateral protecting the lender. If the borrower defaults on his loan or files for bankruptcy, the lender can choose to enlist the help of a collection agency or file a civil lawsuit to recoup some portion of their principal. Lending Club, Prosper, and other platforms offering personal loans, rely on their own underwriting methodology to assess a borrower’s credit risk and determine how likely a borrower is to repay his or her loan. Still, as an investor in p2p loans, it’s worth keeping in mind the risks of investing in an unsecured loan, and the difficulty in recouping any of your principal investment were a loan to go bad.

 

A secured loan, by contrast, is a loan that is secured by an underlying asset or collateral. These underlying assets have real, tangible value. In the case of a secured real estate loan, where an underlying real estate asset secures the loan, if a borrower were to default, the lender would be able to foreclose on the property, and thus recoup some or all of his or her principal investment. This additional security is part of what has led to the growth of p2p real estate platforms, which offer secured loans. While yields may be lower than for unsecured personal loans, many investors prefer the peace of mind of having a real, tangible asset secure their investments.

Posted in:Loans and tagged: LoanLendingMortgage
Posted by David Halabu on March 1st, 2016 12:25 PM