Posted at August 23, 2021
Posted In Uncategorized
If you’re wondering if it really makes sense to get the biggest mortgage possible on your properties … Keep reading.
Afterall, a bigger loan equals a bigger payment, right?
Maybe. Maybe not.
If you haven’t refinanced your home or investment properties recently, chances are pretty good you could cash in on your equity without increasing your mortgage payments.
And if you currently have PMI, there’s a likelihood you’ll even lower your payments.
Remember, if you want to review your financing strategy together …
Click here to schedule a Personal Strategy Session >>
However, what if in order to harvest your equity, you’d be looking at a larger mortgage payment …
Have you heard the term “arbitrage”?
Arbitrage definition: In economics and finance, arbitrage is a practice investors use to take advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance.
It’s how bankers get mind-boggling rich!
Commercial banks “borrow” your savings deposits at around 1% interest and then lend that same money out to your neighbor on a credit card for 20% interest … making a 19% profit on the arbitrage!
(Of course, they cheat because with fractional reserve banking they can actually 10x that profit, but that’s a different discussion.)
The real question … What if you did the same thing?
If your max cash out refi increased your mortgage payment, you might be able to more than cover that increase with arbitrage.
With mortgage rates at historic lows and asset price inflation at historic highs …
Many main street investors profit from the current economic climate in the same way the big banks do.
If you’re an aspiring or active investor looking to arbitrage leveraging extremely low mortgage rates …
We get it! Our team is experienced in working with investors just like you.
While we’re not financial planners nor investment advisors, we’ve been around investors for a long time …
We understand the loan products you’d favor, the tax implications you’re considering, and typical preferred investment vehicles for arbitrage, etc…
So, when you want to talk through your financing strategy with someone that gets it …
