Article for "Need Cash Now"
1. Four important words -- Tax-free Loan Proceeds. Let's say you sell your property, you'd better save a good chunk of the money you receive, because you'll need it next April to pay taxes on your gain. You will be taxed at either capital gains rates (if you have owned it > 1 year) or at ordinary income rates. But when you do a Cash-out Refinance (ReFi) instead, the loan proceeds you get are tax-free! That's right, you will not have to pay any taxes in it next April, or the April next, and so forth, before you eventually sell the property. So you've optimum use of all of your proceeds, without developing a current tax liability.
2. Remember, it's a Buyers market, not really a Sellers market. Why sell if you don't absolutely have to? Get your money out by using a different vehicle (refinance) and preserve what you can do to earn appreciation because the market improves within the years to come.
3. Speed and Control. If you decide to sell your home, chances are it won't sell immediately, if you don't price it well below market price. Let's say you list it with a realtor around the MLS, where in most neighborhoods the average DOM (days on market) is 3-6+ months before selling it. Even after you have a purchaser and open escrow, you've risks beyond your control -- you've got to cope with inspection periods, potential repairs requests, and the risk that the buyer's financing might fall through in the last second. Contrast that to your Cash-out ReFi, where in most cases you can complete the entire refinancing process within Thirty days, and the process is a lot more within your control. Faster and much more reliable cash beats slower and fewer reliable cash every day, in my opinion.
What exactly do you need to start your Cash-out ReFi? You'll need credit tri-merge lots of about 680 or more, at least 25% equity in the property, and you'll likely have to be able to document your income, via W-2's or tax returns. Interest rates are very attractive, so you may even decrease your rate as a result of the ReFi. To get started, contact your mortgage broker to obtain pre-qualified.
Want More? Claim Your FREE Report on How you can Quickly Build $648,000 of Instant Equity in tangible Estate, plus Save $100,000 of Real Cash!
Wish you interest with articles "Need Cash Now"
Are you considering selling some investment property to raise some money? Perhaps you want the money so you can utilize this great buyer's market in tangible estate. Or maybe you take some extra money in your banking account to ride out a number of life's bumpy rides. You've equity in certain property (maybe you purchased it 'free and clear', or have a small loan on it), which means you are
considering selling it (or feel you're forced to market it) to be able to release that cash. Try not to call your Realtor at this time! Your best option may not be to sell, but rather to refinance the property. Listed here are the three key reasons why you might want to refinance instead of sell:1. Four important words -- Tax-free Loan Proceeds. Let's say you sell your property, you'd better save a good chunk of the money you receive, because you'll need it next April to pay taxes on your gain. You will be taxed at either capital gains rates (if you have owned it > 1 year) or at ordinary income rates. But when you do a Cash-out Refinance (ReFi) instead, the loan proceeds you get are tax-free! That's right, you will not have to pay any taxes in it next April, or the April next, and so forth, before you eventually sell the property. So you've optimum use of all of your proceeds, without developing a current tax liability.
2. Remember, it's a Buyers market, not really a Sellers market. Why sell if you don't absolutely have to? Get your money out by using a different vehicle (refinance) and preserve what you can do to earn appreciation because the market improves within the years to come.
3. Speed and Control. If you decide to sell your home, chances are it won't sell immediately, if you don't price it well below market price. Let's say you list it with a realtor around the MLS, where in most neighborhoods the average DOM (days on market) is 3-6+ months before selling it. Even after you have a purchaser and open escrow, you've risks beyond your control -- you've got to cope with inspection periods, potential repairs requests, and the risk that the buyer's financing might fall through in the last second. Contrast that to your Cash-out ReFi, where in most cases you can complete the entire refinancing process within Thirty days, and the process is a lot more within your control. Faster and much more reliable cash beats slower and fewer reliable cash every day, in my opinion.
What exactly do you need to start your Cash-out ReFi? You'll need credit tri-merge lots of about 680 or more, at least 25% equity in the property, and you'll likely have to be able to document your income, via W-2's or tax returns. Interest rates are very attractive, so you may even decrease your rate as a result of the ReFi. To get started, contact your mortgage broker to obtain pre-qualified.
Want More? Claim Your FREE Report on How you can Quickly Build $648,000 of Instant Equity in tangible Estate, plus Save $100,000 of Real Cash!
Wish you interest with articles "Need Cash Now"
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