The last several years have seen an influx of new mortgage options available. Cross Border Investments is proud to offer all the options available for Americans and Canadians to purchase property in Mexico. Along with the new mortgages for purchasing a property, there are also cash-out mortgages available for a property you already own. There are a few different type of cash outs available, which are outlined below.
Cash-Outs on a property you own (deed)
If you purchased a property “in cash”, you could obtain the equity that is in your property via a cash-out. You can borrow up to 60% of the appraised value of the property and this money can be used for whatever you see fit. For example, if you purchased a property 10 years ago for $100,000 and it is now worth $400,000, you can get out $240,000 to use for the purpose you so desire.
Cash-Outs on a preconstruction property you have paid for, but have not yet received legal ownership (deed)
If you used your own money to purchase a preconstruction property, and the property is ready to be legally transferred to your name (deed), you have the option to obtain up to 60% of the purchase price. This can be very helpful for people who want to replenish an investment they cashed-in to pay for the property, or who borrowed against an asset and want to pay it down. Another financial strategy would be to obtain the funds, have the rental income pay for the mortgage, and use the cash-out money to purchase another investment property.
This mortgage is for clients who purchased preconstruction in the past, the property is now constructed, and the date to deed the property is approaching. Please note that is important that the property is within 3 months of being deeded in order to provide current mortgage conditions and a prequalification. As good as CBI is at what we do, we cannot predict the future – for clients who are purchasing preconstruction now with a deed date of 2025, for example, we invite you to reach out about 3 months prior to you signing the deed.
Rate and Term Refinance
If you purchased a property in Mexico with a mortgage and the mortgage options that are available now are more appealing than the options available when you purchased your property, it is most likely advantageous for you to substitute your mortgage and take advantage of better terms. CBI can help you to compare your current mortgage with the new options so you can make the best decision.
This article written by Joshua Rappaport from Cross Border Investments and do not necessarily represent views, opinions or facts of GAYPV Magazine and should only be used for general information purposes only. Cross Border Investment is happy to help you navigate through these options and provide you with the information you need to make the best decision. Please contact one of our representatives today.
