Can refinancing a home be part of a much greater and more glorious plan? Sure, why not? A lot of people might wish to employ a little creativity when it comes to becoming involved with real estate transactions. Whether or not the end result is the desirable outcome just might remain to be seen.
One strategy some will employ is they may refinance a current mortgage and then acquire a new mortgage on a second property. The second property might be bought solely for investment purposes. The new, refinanced mortgage could lower monthly premiums by $200 a month. If the second property is rented out for $800 a month, this money could further cover costs on the second home.
In time, both mortgages can end up being paid off and the equity of both homes might end up increasing immensely. This would certainly be true in the case of a real estate boom, although that would be nefariously hard to predict. Less difficult to predict would be the increase of the value of a home in a vacation area.
Are there any guarantees these results will positively happen? No, but it is one scenario real estate investors may wish to ponder.
You might be surprised at how many money making options refinancing can offer. The Refi Guide can reveal a few more of them.