• Home • Why Invest in Mortgages • Investment Examples • Mortgage Investment Tutorial • Investor Suitability • Mortgage Investor's Decision Matrix • How To Invest • Retirement Investment • Our Services • Glossary • Who We Are • Contact Us 5313 Arctic Blvd. Suite 206 Anchorage, AK 99518 Phone: 907-279-8551 Fax: 907-274-7630 Email		MORTGAGE INVESTOR'S DECISION MATRIX Everyone would like to buy a Mortgage that has a low Investment to Value Ratio, a Payor with a very high credit score, and which at the same time has a high yield. However, such perfect Mortgages don't exist in the real world and the serious Investor must make a trade off between yield and safety. We believe that the best measures of investment safety are the Investment to Value Ratio and the Payors credit score. Therefore, in the Decision Matrix below, the more units of choice that you allocate to achieve a lower ITV or higher credit score, the less you can allocate to yield. We have provided you with the opportunity to allocate 15 units of decision blocks over a total of 30 units of choice (10 units under each criteria). For example, if you wanted a Mortgage with only a 70% Investment to Value Ratio, you would allocate 6 of your units of choice to Investment to Value as shown in the example below. If you also wanted a Payor with a credit score of at least 600, you would allocate 6 of your units of choice to credit score, leaving you with only 3 units to allocate to yield. This means that with that level of safety, you could expect to buy a first position Mortgage secured by a Single Family Residence yielding 11% interest or a second position Mortgage yielding 14%. EXAMPLE INVESTMENT TO VALUE 95% 85% 75% 65% 55% CREDIT SCORE 475 525 575 625 675 INVESTMENT YIELD 1st Position 9% 11% 13% 15% 17% 12% 14% 16% 18% 20% 2nd Position Now go ahead and fill in the blank Decision Matrix under Your Choices to determine the realistic yields you can expect that are commensurate with your risk tolerance. YOUR CHOICES INVESTMENT TO VALUE 95% 85% 75% 65% 55% CREDIT SCORE 475 525 575 625 675 INVESTMENT YIELD 1st Position 9% 11% 13% 15% 17% 12% 14% 16% 18% 20% 2nd Position Yields shown are for Residences (1 to 4 family) and Condos; For Commercial, Residential Cabins and Mobile Homes on Land - -Add 1%; For Improved Land (Developed Ready to Build on Lot or with Improvements >20% but <50% of Land Value) - - Add 2%; For Vacant Land - - Add 3%; For Mobile Homes in Mobile Home Courts - - Add 5%.
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