Interest Rate
What kind of interest rate can one expect to get, on a 10+ unit apartment? assuming a 10% down. What will be a typical rate, points etc, if any.
Just want to be sure of what to look for. Is it true that the interest rates may be different when buying duplexes, rather than 5+ unit that is considered commercial property? Are duplexes not considered commercial in the technical sense? All responses and comments welcome.
A duplex is not a commercial property, and yes the interest rate would be different from a 5-unit. On a 10+unit my guess is that your probably looking at a max of 80ltv w/ a cltv of 90.
Yes, Billyblack, but what rate can I expect to get on e.g. a 12 unit apartment and or in what range?. Someone suggested that with 10% down and a cltv of 90% on a $500k apartment, I shoud expect about 10% to 10.9% on a 30yr 1st and 2nd mortgage and broker point sof 2% and of course, lender fees. There could also, be a prepayment clause in the first to 3 years. Would the above be appropriate, assuming a property you desire.
Is it somethin to stomach and may be refi after the lockout period? Any suggestions?
The rate sounds a little high..Depending on your credit score you should be able to get in between 7-8 %. I would have to check out the pre payment penalty on that. There might not even be one..But I am not positive
Quote:
On 2005-10-29 11:36, dankano wrote:
Yes, Billyblack, but what rate can I expect to get on e.g. a 12 unit apartment and or in what range?. Someone suggested that with 10% down and a cltv of 90% on a $500k apartment, I shoud expect about 10% to 10.9% on a 30yr 1st and 2nd mortgage and broker point sof 2% and of course, lender fees. There could also, be a prepayment clause in the first to 3 years. Would the above be appropriate, assuming a property you desire.
Is it somethin to stomach and may be refi after the lockout period? Any suggestions?
[addsig]
Thanks, Tinman, for the rsponse and others, too!
Bear with me, but what percentage would you expect to cough out for closing costs on a loan from a national lender, gotten thru a broker for such 10+ unit apartment?
My local bank will do commercial loans up to 80% LTV, will not allow a second, 15-year amortization with review at five years, and rate will be prime plus one -- perhaps higher if property does not have strong fundamentals.
I believe that lenders that foreclose end up gettng about 70% of FMT unless there is mortgage insurance on the loan.
Between foreclosure costs, selling costs, fix up cost, carrying costs (i.e. default period and redemption period) and opportunity cost (i.e. loaning outstanding money to a paying customer), it would behoove WF to sell the note.