Mexican Mortgage Terms

Shopping for a loan for a new property in Mexico? One of the most common questions is "What are the terms?" The simple answer is: terms vary. The terms of the loan, just like loans in the US, largely depend on your credit score, the down payment amount, and what type of loan you choose. The better your credit score, the better interest rate you will get.

To see the latest daily rates, please visit our website at www.mexquestmortgage.com

Crime in Northern Baja

There has been a lot of press lately about crime in Northern Baja, more specifically on the toll road from Tijuana to Rosarito. Bandits, posing as policemen, are pulling over unsuspecting travelers and taking everything from money to watches to cars. This is frightening news even to the most experienced Baja traveler. The most important thing is not to drive this road very late at night or early in the morning (when it is still dark out). The problem has been brought to the attention of the Mexican government and they have placed Green Angels (Angeles Verdes) along the toll road for extra protection. The continued bad press will hopefully be motivation enough for the government to make the roads safe again and boost tourism.

Newsflash - New airport planned for Baja

According to the Gringo Gazette, their is a new airport planned for north of Loreto (in Baja California Sur). This privately owned new airport will be south of Mulege and make it easier for tourists to access the area. The cost of this project is expected to be in the hundred millions.

SPOTLIGHT: Mulege

I had been hearing about Mulege for years. All I knew was that it was about halfway down the Baja, on the Sea of Cortez. Recently I had the opportunity to see it firsthand on my roadtrip down the peninsula.

Mulege is one of the most beautiful places that I have ever seen. The water is shades of turquoise, green, and deep blue. The bay is flanked by huge islands that look like something out of a movie.

For those that want to escape the hustle and bustle of the bigger cities and enjoy some peace and quiet, this is the place for you. It is a great place for fishing, as it is where the cold currents from the North and the warm currents from the South meet. Mulege is also extremely popular with sailors. The town has a river running through it and is almost jungle like.

Stay tuned for an update this afternoon...

Property in Mexico as an Investment

Buying property in Mexico continues to be a great investment. If you do your research and choose your property wisely, you can create an unbelievable stream of monthly income by renting your property as a vacation rental. Areas like Los Cabos, have a high season which runs from late October to May, and condo/home rentals are in high demand.

If you plan on buying property to use as a vacation rental, I suggest you look in areas like Los Cabos, Puerto Vallarta and Cancun/Riviera Maya. Why these three areas? Cities like Rosarito, San Felipe, and Rocky Point can all be reached by car from Arizona and California. To get to Los Cabos, Vallarta and the Riviera Maya, people have to travel by plane which translates to a longer stay in most cases (not as many "weekenders").

What is LTV?

When shopping for a loan, you will probably hear a number of acronyms and terms that are foreign to you. One of the most commonly used loan terms is LTV, or loan-to-value. So, what is LTV?

The loan to value ratio is a measurement of risk. Underwriters will look at the mortgage amount divided by the appraised value of the property to arrive at the LTV. The higher the LTV ratio, the greater the risk of the loan. Customers with a high LTV who are approved may be required to purchase mortgage insurance or pay extra points.

FORMULA

LTV Ratio = Loan Amount/Appraised Value of the Property