Unexpected Happenings: A Cash-in Refi? Standard Sale of an Underwater Property?

Here's a new term for you: a Cash-in Refinance. It's not a recommendation, but an interesting concept whereby homeowners wanting to refinance their homes but having little or no equity actually contribute new funds at the time of the refi. It's one way to take advantage of the amazing rate environment we're experiencing, and there are scenarios where this actually generates a positive return.

Another approach, if you are slightly underwater, is to pay the difference on sale of your home, in order to preserve your credit while getting highly favorable loan terms and a great price on a trade-up property.

More info: Doubling Down on Housing - WSJ.com

-David

Advice for Buyers in a Slow Market

by David White


Buying, Investing, & Trading Up

What's the smart real estate move in a slow market with relatively low interest rates (like 2008)? Well, those conditions describe a buyer's market, in which the optimal decision for a real estate investor or a homeowner desiring a more valueable home is to trade up and be sure not to overpay. The reasons for this are very straightforward:

It's always best to have the negotiating leverage on your side when you are contemplating a transaction. In a buyer's market, sellers must compete for the buyer's business. A buyer represented by a Realtor who is also a good negotiator has the best possible chance of getting an excellent price and terms in a buyer's market