Are these good ARM loan options?

2 Replies

Are these good ARM loan options for multi-unit investments properties?

A) 5/1 ARM – 20-year Term; Up to 30-year Amortization

Interest Rate Options:

1) L5 Resi Owner-Occupied 5/1 ARM No Point Rate + 1.00% + 1 point

2) L5 Resi Owner-Occupied 5/1 ARM No Point Rate + 1.50% + 0 point

Presently: L5 Resi Owner-Occupied 5/1 ARM No Point Product is set at 2.50% therefore, the CML Non-Owner Occupied 5/1 ARM rate would be

1) 2.50% +1.00% = 3.50% +1 point

2) 2.50% +1.50% = 4.00% + 0 point

Term: Max: 20 years

Amortization: Up to 30 years

Floor: The initial rate on the transaction will be established as the Floor rate for the life of the loan.

Repricing: At the end of the initial 5-year period, the interest rate would reset to the then 1-year T-Bill Rate (Index) plus 325 basis points (margin)

No prepayment penalties required

Interest Rate Repricing Caps: 2% +/- at each change date; 5% +/- over life of the loan

Closing fees: Utilize mortgage calculator fee schedule

Standard commercial real estate loan underwriting guidelines are required (i.e. Application, Appraisal, Rent rolls, PFS, two years FITR’s,) annually

B) 7/1 ARM – 20-year Term; Up to 30-year Amortization

Interest Rate Options:

1) L5 Resi Owner-Occupied 7/1 ARM No Point Rate + 1.00% + 1 point

2) L5 Resi Owner-Occupied 7/1 ARM No Point Rate + 1.50% + 0 point

Presently: L5 Resi Owner-Occupied 7/1 ARM No Point Product is set at 3.25% therefore, the CML Non-Owner Occupied 7/1 ARM rate would be

1) 3.25% +1.00% = 4.25% + 1 point

2) 3.25% +1.50% = 4.75% + 0 point

Term: Max 20 years

Amortization: Up to 30 years

Floor: The initial rate on the transaction will be established as the Floor rate for the life of the loan.

Repricing: At the end of the initial 7-year period, the interest rate would reset to the then 1-year T-Bill Rate (Index) plus 325 basis points (margin)

No prepayment penalties required

Interest Rate Repricing Caps: 5% at initial change date; 2% +/- at each subsequent change date; 5% +/- over life of the loan

Closing fees: Utilize mortgage calculator fee schedule

Standard commercial real estate loan underwriting guidelines are required (i.e. Application, Appraisal, Rent rolls, PFS, two years FITR’s) annually

C) 10/1 ARM – 20-year Term; Up to 30-year Amortization

Interest Rate Options:

1) L5 Resi Owner-Occupied 10/1 ARM No Point Rate + 1.00% + 1 point

2) L5 Resi Owner-Occupied 10/1 ARM No Point Rate + 1.50% + 0 point

Presently: L5 Resi Owner-Occupied 10/1 ARM No Point Product is set at 3.50% therefore, the CML Non-Owner Occupied 10/1 ARM rate would be

1) 3.50% +1.00% = 4.50% + 1 point

2) 3.50% +1.50% = 5.00% + 0 point

Term: Max 20 years

Amortization: Up to 30 years

Floor: The initial rate on the transaction will be established as the Floor rate for the life of the loan.

Repricing: At the end of the initial 10-year period, the interest rate would reset to the then 1-year T-Bill Rate (Index) plus 325 basis points (margin)

No prepayment penalties required

Interest Rate Repricing Caps: 5% at initial change date; 2% +/- at each subsequent change date; 5% +/- over life of the loan

Closing fees: Utilize mortgage calculator fee schedule

Standard commercial real estate loan underwriting guidelines are required (i.e. Application, Appraisal, Rent rolls, PFS, two years FITR’s) annually

Too much. I got bored and scrolled down. However basically loos like what I get. Only I get 15 year am