We have worked with a number of clients recently to refinance first and second home. The rates for a mortgage on a primary residence are still in the lower 5% range …. We did close a few under 5%
For vacation homes and investment properties, the rates are higher
Also, with investment properties, keeping cash flow positive if at all possible is crucial to getting a positive return from the investment.
So, if you have not reviewed your mortgages, and equity lines, now is a good time to do so
We have also helped clients and children of clients buy new homes.
Here, there are questions on gifts, use of trust assets, tax deductions against income that changes so that the rates change so that the deduction value changes.
One client even created a spreadsheet to address all these variables for his daughter, with some input from me. As he observed, the calculus gets very complex.
For example, there are first time home buyer mortgage programs and tax credits, but if the buyer’s income starts at a low level, the tax benefits are not as valuable as …..
My plan is to create a more comprehensive analysis to post on our web site for the first-time home buyers, as we have done for investment property and for purchases with vs. without financing.
If you have questions or comments, please let me know