Fix & Flip Investment Funded in Hollywood, FL

In May, Refresh funded a $170000 Fix and flip loan for a single family home fix and flip project in Hollywood, Florida. The purchase price was $170000. The Borrower plans to complete the rehab and flip back onto the market for $200000, so the loan-to-value is 85%. The loan term is 1 year. The loan was made to a seasoned …

Housing Bubble, you Again?

In the wake of 2008 Housing Crisis in South Florida, many fear the current market is in a bubble. Looking at the median sales price for homes in Miami, Florida in the graph below, the trend for 2016 looks eerily similar to the one that was approaching 2007. But before, abandoning your property there are many differences in the real …

How Scary are Second Mortgages?

These days, taking out a second mortgage has become negatively connotated. But, what exactly are the pitfalls to taking a second mortgage? Second mortgages allow you to not take out a personal loan, but instead tie an installment loan to the property, leveraging your home further with another lien. Another benefit to second mortgages is that the interest is also …

What to Say When Someone Asks You to Cosign their Mortgage?

Agreeing to co-sign someone’s mortgage is not a light decision. Holding the responsibility of cosigning a mortgage is no small feat– you are placing a commitment to some else’s financial obligation. However, in this day and age, the act of cosigning a mortgage can be seen as becoming old and outdated. Traditionally used to allow hopeful homeowners to obtain larger …

Loan-to-Value (LTVs) what does it mean?

The loan-to-value ratio (LTV ratio) is a value that reveals the mortgage amount in comparison to the actual value of the property. It gives an assessment of lending risk for lenders or banks to examine in approving a mortgage. What does this mean? Usually the higher the LTV the higher the risk is to the lender; as a result, it …

What is a Pre-payment Penalty? Should you Have to Pay It?

  A pre-payment penalty is a fee that establishes the terms in which a mortgage lender or a bank has with the borrower that puts re strictions on the amount and time that the borrower can pay off that loan. It is originally used by lenders to ensure a certain amount of interest payments per month, for example, taking 80% …