BiggerPockets: Seeing Greene: Investing with High DTI, When to Refi, & Getting Out of Debt

The real estate market has been largely “stuck” for nearly two years now. High mortgage rates have made homebuying challenging for first-time buyers. For existing homeowners, it’s psychologically difficult to get out of a historically low mortgage rate.

That’s kept existing homes largely off the market as well. However, while financing is more difficult than it has been in recent years, it’s not impossible. And buyers and investors alike have options.

For those getting started in real estate investing, one can buy a home with as little as 3% down. And after a few years, the first time homebuyer program can be used again.

Theoretically, a home could be bought with  low down payment, lived in for a few years, and then rented out.

Also, while today’s mortgage rates are high, they’re not that high relative to other forms of debt. Those looking to escape double-digit interest rates on credit card debt may want to consider refinancing.

While refinancing has some costs to it, a 7% mortgage is better than having to pay as much as 20% annualized on a credit card balance.

Similarly, a home equity line of credit can be created and tapped as needed to acquire capital for paying down higher cost debt, or taking advantage of opportunities in the real estate market.

To listen to the full opportunities for investing in real estate now, click here.