Property and Real Estate Resources

You don’t want to jump into anything blindly or sign a real estate contract or home mortgage loan contract or any type of contract without giving it some serious thought. Watch out for anything that appears to be vague. You want to keep in mind when financing real estate that lenders will be able to tell you only what you might be able to afford based on your current not future salary and level of debt including your credit card debt. First of all you’ll need to find a lender for your real estate financing and potential residential, home or other type of investment.

The real estate financing situation for each buyer is going to be different of course. A 20-year fixed rate mortgage term will mean higher payments, when compared to a 30-year fixed-rate mortgage. The advantages of a fixed-rate mortgage include consistent principal and interest payments, which will make this loan stable – your rate won’t change; a good choice if you’re likely to stay in the house for a long time.

And if you have less-than-perfect credit or a ‘bad credit’ credit report don’t be too concerned about it. The disadvantages of an adjustable rate mortgage include the possibility of increasing monthly payments if interest rates go up and over the years this has happened many times and people have lost their homes. If you’ve applied to several lenders, when you finally do select a good lender you may have to explain why there are other inquiries from lending institutions on your credit report.

The disadvantages of a fixed-rate mortgage include the possibly higher cost. These loans are usually priced higher than an adjustable-rate mortgage. With adjustable rate mortgages the initial interest rate is usually lower than with a fixed-rate mortgage so the monthly payment would also be lower. An adjustable rate mortgage could be a good choice because on the average, most people move or refinance within seven years, but be aware of the fluctuating interest rate.

If the rates in the current market are high, you’ll probably get a better price with an adjustable-rate loan. Any money you receive from a lending institution will show up on your credit report and your payments will factor into your debt-to-income ratio. And a good or bad FICO credit score is not a requirement for most conventional or government loans like FHA loans or VA loans.

Reminder – an adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to the terms specified ahead of time. Your income and debts will typically play the biggest roles in determining what price range you can afford when buying a house. Insiders know that the advertised mortgage rates you find are not always what you’ll get from the lender – it could be fluctuations in the market, good or bad economic news, any other of a dozen reasons, but interest rates can change even throughout the day.

A range of mortgage options are always available and some loans require little money down. And if you’re on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.

Keep in mind that low credit scores do not mean you cannot buy a home or other real property; continue to explore the options and you’ll come up with the best real estate financing. Ask other homeowners what real estate and mortgage problems they’ve encountered – everyone has stories to tell. Rates can change fast, one way or another, day by day; this is true for residential, commercial and investment real estate financing. Always get the most current interest rate quotes. The rate won’t last long.

For years, Americans have entertained the idea of retiring in Mexico. But today with the rising cost of living in the US, more and more people are buying property in Mexico and enjoying their retirement years for far less than they could north of the border. Contrary to popular belief, retiring and buying property in Mexico is much easier than most people think.

Retirement friendly Mexico:

Mexico isn’t just a great place to retire simply because buying property in Mexico is inexpensive and the weather is world class. The Mexican government offers attractive benefits like a special visa and inexpensive health care for expatriates who come to Mexico seeking the good life in their retirement years.

The “rentista” is a special type of non-working visa available to retirees 51 and older. In order to obtain a rentista, you’ll need to provide a letter from the bank or social security administration stating that you receive a certain minimum income each month. Retirees are also eligible for IMSS, a Mexican social security plan that costs $200 per year and covers medical, dental, and vision care.

Buying property in Mexico:

Mexico has made buying property in Mexico for non-nationals a simple process. You don’t need to be a resident of Mexico to own a home in Mexico. If you’ll be buying property in Mexico within 50 miles of the coast or 100 miles of a national border, you will need to set up a Mexican corporation which will technically own the land or a beneficial trust called a fideicomiso.

When buying property in Mexico, make sure to choose a reputable real estate agent to help you get your corporation or trust established correctly. There is no real estate license system for selling and buying property in Mexico, meaning that anyone can act as an agent whether or not they are familiar with the laws and procedures. Before buying property in Mexico, be sure to spend time researching real estate agents and choose one with experience and references for working with international buyers.

Property Taxes:

Property taxes, called predial in Mexico are extremely low compared to the US Canada, Europe, and most parts of the world. The tax is a percentage of the assessed value of the property, which is determined at the time of the sale. This is another good reason for buying real estate in Mexico before the prices start to really climb.

Although your property value may rise drastically, you’ll continue to pay taxes on the stated sale price. The percentage of property tax you’ll pay depends on where you buy real estate in Mexico. In most places, the predial is approximately 0.1% of the stated value.

Weather:

The type of weather you will experience greatly depends on where you choose to buy real estate in Mexico. No matter where you buy real estate in Mexico, you probably won’t need a heavy winter coat, but there are great differences in the weather depending on which part of the country you’re in.

If you choose Costa Maya property, you’ll enjoy warm and gorgeous tropical Caribbean weather for part of the year, balanced by the rainy season between June and October. For more temperate weather, you may want to consider locations that are located 3,000 to 6,000 above sea level such as Oaxaca or Chihuahua.

The benefits to retirees such as inexpensive property, a wonderful healthcare system, and a relaxing environment are just the beginning. Mexico is rich with culture and tradition, filled with eco-friendly things to see and do, and has some of the most amazing landscapes you’ll find anywhere in the world. If you’re just beginning to think about retiring and buying property in Mexico, you’re in for an exciting journey of discovery on your quest for knowledge about this fascinating country.