1.95% Fixed Rate....5yrs(is It Possible?)
Alright......here's the scoop.
min. Fico 620...loan amount to $600,000.00
first time buyers: min. fico 680....loan amount to $600,000.00
95% LTV(stated doc.)for single property owners only.
I have the information on this loan program...but i wonder? In todays loan market programs how can a bank do this? I mean the lowest rate I ever heard of was 4.9 apr. on a good day. Well, if anybody has any questions or answers to my question please feel free to email me.
It is called negative am. A wonderful/terrible thing.
I use these loans and they are great.... if you know what you are doing. You can get a loan that has a 1.25% interest only payment option. Though the loan is acquiring interest at the indexed rate( I think it is 4.25% give or take) The extra interest is tacked on the end of the loan at the end of the adjustable period, usually 5 years. The thing is, if you are getting a good appreciation, you will still owe less than what the house is worth, and the cash flow you get in the meantime is tremendous. Example: One house I have is worth 750k. I owe 630k, but on this program, my payments are $1100. a month.... In three years, the loan will have accumulated about 56k more in interest, but the house at a low appreciation rate of 7% will be worth about 850k. So I will owe about 680k, and still make a tremendous profit. These loans are great if you can wade through all the numbers to see how it works.
These loans are also available for investment property as well, just add .4 to the 1.25 for the start rate. The start rate is locked in for a year. Then payments will adjust up or down. I have a website that has the presentation link on it.
Phillip
thank you much for the info...don't know to much about loans but i'm learning....thank u,again
Quote:
On 2003-12-13 19:36, randyfinn wrote:
I use these loans and they are great.... if you know what you are doing. You can get a loan that has a 1.25% interest only payment option. Though the loan is acquiring interest at the indexed rate( I think it is 4.25% give or take) The extra interest is tacked on the end of the loan at the end of the adjustable period, usually 5 years. The thing is, if you are getting a good appreciation, you will still owe less than what the house is worth, and the cash flow you get in the meantime is tremendous. Example: One house I have is worth 750k. I owe 630k, but on this program, my payments are $1100. a month.... In three years, the loan will have accumulated about 56k more in interest, but the house at a low appreciation rate of 7% will be worth about 850k. So I will owe about 680k, and still make a tremendous profit. These loans are great if you can wade through all the numbers to see how it works.
for give me for my ignorance, but i don't understand the start rate term.
Quote:
On 2003-12-13 20:25, gremlin360 wrote:
These loans are also available for investment property as well, just add .4 to the 1.25 for the start rate. The start rate is locked in for a year. Then payments will adjust up or down. I have a website that has the presentation link on it. <IMG SRC="images/forum/smilies/icon_wink.gif">
Phillip
Well I may be wrong, (please tell me if I am) but it seems as though 1.25 + .4 = 1.65. So that would be the start rate, Right?