Grow your real estate investment portfolio with us. With some of the best mortgage products and rates and no service fees, we make your investment financing easy, REAL Easy!
Did you know you could:
- Purchase an investment property with only 20% down payment
- You can get extended mortgage amortization for up to 35 years, which will lower monthly obligation and provide better cash flow
- You can get not just a mortgage but a Home Equity Line of Credit for an investment property
Why get a Home Equity Line of Credit instead of a standard mortgage?
HELOC is an amazing product and most wanted among investors, builders and multi-property owners and here’s why. HELOC only allows repaying the interest only without touching the principal if one doesn’t choose to. Still the whole balance of HELOC can be paid anytime without a fee or penalty whatsoever. The flexibility behind HELOC is simply irreplaceable and easy monthly interest only payments are ideal for an investor looking to free up cash flow. Some lenders will only provide HELOCs up to 65%-75% of the property value, but if 80% LTV is required then the rest can be topped up and advanced as conventional mortgage.
Andrew found a rental property he would like to buy for $500,000. He has an initial down payment of $100,000 or 20% and he’s looking to get $400,000 mortgage. Andrew’s ultimate goal is to have the lowest payment possible due the property being rental and cash flow is the most important in this case. Mortgage Brokers from National Mortgage Web advised the following mortgage products to their client:
70% LTV is a HELOC of $350,000 and 10% LTV is a Variable Mortgage of $50,000, together combined equals 80% LTV $400,000 mortgage. It’s called segmented mortgage that consists of two parts: one part 70% HELOC and second part 10% VRM.
Rental Property $500,000
Down Payment 20% $100,000
HELOC 70% LTV $350,000 – interest only monthly payment $977.08
VRM 10% LTV $50,000 – monthly payment $170.24
Combined Monthly Payment $1,147.32
Above example clearly displays monthly payment of $1,147.32 on a $400,000 mortgage meanwhile rental property generates $2,200 per month. Andrew was very pleased with the results of segmented two-part mortgage to keep monthly expenses at the minimum meanwhile creating positive cash flow.
- Need to increase your cash flow? We can offer you an interest only mortgage up to 75% LTV. Interest only mortgages are Home Equity Lines of Credit or HELOC. Not every lender offers that great product, and if they do usually interest rate is prime 2.85% + 0.50% = 3.35%. But at National Mortgage Web we have access to lenders offering HELOCs at prime + 0.25% = 3.10%!
- Increase your Rate of Return ROI with an extended amortization for up to 35 years. Yes, that’s right, if you have 20% down payment we still can have you approved over 35 year amortization.
- Plan your next acquisition by starting with a pre-approval and locking in a low mortgage rate for up to 120 days.
We give you the power to plan. Our mortgage experts will help you get all the details you need to choose the right mortgage for your investment.