I am not sure what exactly you are asking... To my knowledge - as an investor, the 1.5% (or 1%) rule - is a rule of thumb to see if something is a good investment. The monthly income of the property should AT LEAST be 1%-1.5% of the total price. If it is not, then it is not a good deal. Please clarify your question, unitl then - I hope this helps!
I also am unsure of your question. Has someone promised you an interest rate of 1.5% if you take out a mortgage with him. It can be done but the buy down, ie points to be paid would be rather heavy and the time period almost non existing.
You see the heavy points would merely compensate for the lack of interest. That type of things is generaly a scamy real estate deal on some poor unsuspecting Buyer. He overpays like crazy for the property and they give him this interest rate for the first three months then it starts to float at market. Yip such an awakening.
The one I boo boo'd on several years back. The Broker in transaction just made the difference between a 7% interest payment and the 4% promised. He made them in advance for the three months after which it sped on wings of reality to its true yield. Did I feel like a horses ass. My wife almost bought me a bridle.
I also do not understand the 1.5% are you refering to the percentage of posts Lucius has made which I do NOT find VERY humorous as well as informative.<IMG SRC="images/forum/smilies/icon_lol.gif"> [ Edited by MrMike on Date 12/21/2003 ]
I find Lucus' posts to be both informative and entertaining! Tremendous amount of experience shows through. I for one am glad he posts as much as he does!
Could be the original question was about the low int (start rate) ARMs out there. The ones I have seen start out low and increase the payment 7.5% per year for 5 years, then amortize for 25 yrs. Neg amortization is possible (Probable) but does that matter if you owe $5K more in 5 years if the ppty went up $40k-$60k? Sure makes it easier to get into and hold several propertys.
Quote:
On 2003-12-21 20:46, pmatheson1 wrote:
Mr. Mike,
I find Lucus' posts to be both informative and entertaining! Tremendous amount of experience shows through. I for one am glad he posts as much as he does!
Anyone else feel this way?
Pmatheson, Reread my post that IS what I said. LOL
I am not sure what exactly you are asking... To my knowledge - as an investor, the 1.5% (or 1%) rule - is a rule of thumb to see if something is a good investment. The monthly income of the property should AT LEAST be 1%-1.5% of the total price. If it is not, then it is not a good deal. Please clarify your question, unitl then - I hope this helps!
Take Care,
I also am unsure of your question. Has someone promised you an interest rate of 1.5% if you take out a mortgage with him. It can be done but the buy down, ie points to be paid would be rather heavy and the time period almost non existing.
You see the heavy points would merely compensate for the lack of interest. That type of things is generaly a scamy real estate deal on some poor unsuspecting Buyer. He overpays like crazy for the property and they give him this interest rate for the first three months then it starts to float at market. Yip such an awakening.
The one I boo boo'd on several years back. The Broker in transaction just made the difference between a 7% interest payment and the 4% promised. He made them in advance for the three months after which it sped on wings of reality to its true yield. Did I feel like a horses ass. My wife almost bought me a bridle.
Lucius
I also do not understand the 1.5% are you refering to the percentage of posts Lucius has made which I do NOT find VERY humorous as well as informative.<IMG SRC="images/forum/smilies/icon_lol.gif"> [ Edited by MrMike on Date 12/21/2003 ]
Mr. Mike,
I find Lucus' posts to be both informative and entertaining! Tremendous amount of experience shows through. I for one am glad he posts as much as he does!
Anyone else feel this way?
Could be the original question was about the low int (start rate) ARMs out there. The ones I have seen start out low and increase the payment 7.5% per year for 5 years, then amortize for 25 yrs. Neg amortization is possible (Probable) but does that matter if you owe $5K more in 5 years if the ppty went up $40k-$60k? Sure makes it easier to get into and hold several propertys.
Quote:
On 2003-12-21 20:46, pmatheson1 wrote:
Mr. Mike,
I find Lucus' posts to be both informative and entertaining! Tremendous amount of experience shows through. I for one am glad he posts as much as he does!
Anyone else feel this way?
Pmatheson, Reread my post that IS what I said. LOL
Mr Mike,
Aggh! You got me, I have the damndest time with double negatives. (And I passed Algebra, twice!)
I know, there is a portfolio what gives you a started rate of 1.25% on a five years fixed payment schedule. Is it this what you are looking for?
Send me an email at **Please See My Profile** and let me know if you need more information about it.
Eleni