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Mortgage rates are rising. In mid-June of 2022, the 30-year fixed-rate mortgage averaged 5.81%. That may seem high; however, rates now are where they were right after the financial crisis of 2008, when many people were actively trying to obtain a mortgage.u00a0<br>
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The housing market has seen intense competition, massive price surges, and dwindling inventory since 2020 – But if you’re a real estate investor, all of that may be about to change, and for the better. • Mortgage rates are rising. In mid-June of 2022, the 30-year fixed-rate mortgage averaged 5.81%. That may seem high; however, rates now are where they were right after the financial crisis of 2008, when many people were actively trying to obtain a mortgage.
These higher costs are putting pressure on the housing market. It has already led to a decrease in mortgage applications to purchase and refinance for owner-occupied property, but an increase in investor mortgage applications getting in on high rental prices, demand, and lack of available rentals. What once was a seller’s market is shifting slightly, causing properties to stay on the market longer. For some, this has resulted in a liquidity issue for investors looking to sell their properties quickly to buy additional properties. • Luckily, there is a relatively simple and easy financing solution – AM Bridge Loans.
WHAT IS A BRIDGE LOAN? • Investors use real estate bridge loans as a short-term financing tool to bridge gaps in financing. For example, an investor might take out a bridge loan against a property they are selling in order to purchase or act on another investment property immediately. • In this case, the homeowner may need the money before their property sells. They can now use an AM Bridge loan to extract equity today while waiting for the right price to sell. • Bridge loans can be secured quickly, often closing within a week to 10 days, and with little paperwork, because lenders are more interested in the collateral (i.e., a house) than a credit score or cash flow.
How to Use Bridge Loans to Free up Liquidity • Bridge loans allow investors to quickly free up liquidity using their real estate assets as collateral. This is a quick asset-backed mortgage where your financials or credit are not the primary underwriting criteria; the asset is.
As explained above, bridge loans are a great way to free up liquidity. A bridge loan may also be a good fit for you if you: • Need to free up liquidity in a fast-moving market • Can’t afford to take out a mortgage on a new property without selling your other property • Need to secure funds to acquire or renovate real estate quickly • Already purchased a property, but you can’t sell your current property quickly enough • Financial strain where conventional financing won’t work or is difficult to obtain
Contact Us • Contact us: +1 830.217.6608 • Email us: info@gmg.asia • Website: https://usbridgeloans.com/ • Address: U.S. Bridging Loans118 Broadway STE 638, San Antonio, TX. 78205 USA • 171A Telok Ayer Street Singapore 068621 • For more information about US Bridge LoanVisit our website.
