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Post by genelia on Oct 31, 2011 4:53:37 GMT -5
Obtaining the best financing arrangement is the key to a profitable property investment. Investment properties can be profitable when the financing costs are lower than the income generated by their owners. A mortgage for investment property is a popular option for funding the acquisition of property. Interest rates are generally lower and payment terms are relatively favorable to the investor.
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Post by stomach143 on Oct 31, 2011 5:06:06 GMT -5
A mortgage refers to a loan that is secured by property which reduces the risk of the lender by serving as the source of payment should the borrower fail to repay the loan at the end of the loan term.
Features of mortgage:-Interest rate: The interest is the amount that a lender charges a borrower for using its money. Generally, the interest rate on a mortgage for investment property is relatively lower than an unsecured loan because the collateral lowers the lender's risk. Risk plays a crucial role in the costs of financing.
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