This is one of what I hope are many posts aimed at educating potential consumers and agents about Mexico Real Estate and Financing. My goal is also to include opinion pieces about potential changes that could improve the process of overseas financing, truth and myths about financing in Mexico, detailed information about the merits of investing in Mexico, retiring in Mexico, frequently asked questions and other general industry information.

It is estimated that there is roughly 40-60 billion dollars worth of real estate in Mexico owned by US borrowers. Most of this is free and clear property or borrowers financed through the developer at astronomical rates of 12%+. In the past borrowers had no other choices. They could use peso based loans but those were often higher rates, based on an unstable currency and were typically a 1 year adjustable rate note. Needless to say, there is a huge demand for refinances in Mexico.

Many analysts believe that we have not even hit the tip of the iceburg as far as development in Mexico's resort areas. Costa Rica, Panama and Mexico are all seeing a steady stream of borrowers looking to purchase 2nd homes for retirement. One quick look at the demographics would show that this will only increase. Great weather and a cheaper standard of living are all great reasons to retire to mexico. It used to be that borrowers would just pull equity from their primary residence to pay for these 2nd homes, but with the decrease in home values in most US markets and the increase in prices for most resort areas (it is rare to see condominiums in many markets for less than 300k and not uncommon to see 500k+ median home prices). I live in Phoenix and I see first hand the number of snow birds who purchase properties in retirement areas in order to enjoy our great winters. Now imagine the appeal of purchasing a property on the beach for roughly $200 per square foot (much cheaper than beachfront in the US) that can be enjoyed year round and rented out as an investment property while not being occupied by the owner.

Now can you see the potential for purchases and refinances in Mexico. This is an absolutely exiting opportunity and I am thrilled to be funding loans in Mexico. Like I mentioned before, this is just one of many future posts meant to entertain and enlighten you about Mexico real estate and mortgages. If you have any questions about the process or general questions about this market, feel free to leave a comment here or contact me directly. I welcome the feedback. You can also visit my site www.mexicomortgageloans.info.