At first glace, the loans don’t look too bad – with the exception of the PMI on the first one. You should be able to get around that.
Also, are the points for a buy-down? Or, are they for loan origination? If they’re for loan origination, I would ask your broker how much yield spread is on the backend.
As you may know, a broker makes money from the points they charge, as well as from the yield spread. But, the amount of spread can affect your interest rate. So, it would probably be beneficial to find out if there’s any rate bump from that.
Whether to go fixed rate or not is a tough call, and could probably be argued either way. A lot really depends on your own comfort level, your investment strategies, how long you typically keep a loan (not the property), your market area, etc.
If the payments are similar and the tax breaks comparable then the only other thing to consider are closing costs. Take a look at which is cheapest to execute. If you plan on holding for more than 5 years this is the way to go if less than 5 years a 5 year adjustable will allow you more money in your pocket every month but in 5 years who knows where the rates will be....
Good Luck
I just got a quote from a local bank for single family rentals in Ohio on 30 yr loans. All with $499 closings costs, no points or origination. I thought they were all pretty good.
70% LTV, 30 years, 6.375%
or
80% LTV, 30 years, 6.875%
or
90% LTV, 30 years, 7.375%
Look at the judgement you were granted. Does it give you the right to the rent and posession of property? If so....it means you can take the money and still evict her. Make the local judge explain it to you. You paid for the service.
Do you have a security deposit on her? You should and yuo should do the right thing and give her the money back. It may come back to bite you if you keep her money and evict her (rocks through the windows, etc)
[addsig]
National Tenant Network is good. Check them out:
http://www.ntnnet.com/index2.html
did they disclose APRs? That will help you shop, and see which is the cheapest.
Do you really want 30yr money?
Do you have a financial calculator or excel? You could calc your payments.
cjmazur
Please explain why you think he/she would not want a 30 yr loan?
I have a list of lenders that go 90-100% LTV depending on fico of borrower.
Greetings alexlev,
At first glace, the loans don’t look too bad – with the exception of the PMI on the first one. You should be able to get around that.
Also, are the points for a buy-down? Or, are they for loan origination? If they’re for loan origination, I would ask your broker how much yield spread is on the backend.
As you may know, a broker makes money from the points they charge, as well as from the yield spread. But, the amount of spread can affect your interest rate. So, it would probably be beneficial to find out if there’s any rate bump from that.
Whether to go fixed rate or not is a tough call, and could probably be argued either way. A lot really depends on your own comfort level, your investment strategies, how long you typically keep a loan (not the property), your market area, etc.
Just my thoughts on this
If the payments are similar and the tax breaks comparable then the only other thing to consider are closing costs. Take a look at which is cheapest to execute. If you plan on holding for more than 5 years this is the way to go if less than 5 years a 5 year adjustable will allow you more money in your pocket every month but in 5 years who knows where the rates will be....
Good Luck
I just got a quote from a local bank for single family rentals in Ohio on 30 yr loans. All with $499 closings costs, no points or origination. I thought they were all pretty good.
70% LTV, 30 years, 6.375%
or
80% LTV, 30 years, 6.875%
or
90% LTV, 30 years, 7.375%
Look at the judgement you were granted. Does it give you the right to the rent and posession of property? If so....it means you can take the money and still evict her. Make the local judge explain it to you. You paid for the service.
Do you have a security deposit on her? You should and yuo should do the right thing and give her the money back. It may come back to bite you if you keep her money and evict her (rocks through the windows, etc)
[addsig]