Updated over 7 years ago on . Most recent reply
Email from banker on 4plex
Breakdown the last part for me... I am confused on the shorter ammortization part.
$35,000 FIXED at 5.375 for 72 months. Fully amortized. I’ll finance all of the closing costs (doc fee, flood fee, mortgage recording fee, title opinion, abstract update for final title opinion). Monthly payments are about $585. Short amort on this one still has a debt service coverage ratio of 1.25 at $1100 per month and jumps to 1.82 at $1600 per month. Pays off in 6 years or less if you paid extra on it and frees up the property to be used in other purchases.