Considering present mortgage options if you are planning to invest

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The historical lows with regards to the mortgage rates are still holding a strong position. This is helpful enough not only for the first time home buyers, and the people planning to refinance, but is good also for the lenders and the real estate investors. As a result, the mortgage applications are said to have increased enough. At present, the interest rate on the 30 year mortgage is standing at 3.36% and that of the 15 year mortgage is standing at 2.69%.

Investing in the real estate market

According to Warren Buffett, stocks and the real estate market are the two bestinvestment options, as always. He has also said that if he would have had the option, he would end up buying couple of at least hundred thousand homes, the single-family ones. He says that it would be easy enough to manage these loans. Thus, he would simply load up on these loans and also take out mortgages at the very affordable and low rates.

Thus, you can consider investing in the real estate market and also taking out the mortgages at affordable rates.

So, what are your options with regards to real estate investment?

1. Real estate investment trust (REIT): You will be required to become a member of the corporation in order to be able to do real estate business. It involves quite important exchanges and acquires real estate properties. Thus, this helps in generating regular income.

2. Investment groups: It works like that of a mutual fund, in which you are required to become a member of the investment groups. You as a result, will be required to rent out single and also the multiple units which you own, to this management company. The company acquires your property and also maintains it. The company can rent out the properties, and thereby receive percentage of the monthly rentals.

3. Trading: If you are planning to invest in real estate market, you can choose the option of buying and reselling a property in between short time span. This is called 'flipping'. You wouldn’t be required to spend dollars in order to be able to establish the property. However, as this involves large amounts of money, it can also result in huge losses.
   
   

4. Rental: If you already have a home and there’s mortgage against it, you can opt for renting out the home.