I recently purchased a condo for $32,500. This is a condo I am renting out. Bank asked for 20% down plus fee's. Rate is 6% for 5 years then adjustable after that on a 20 year loan. Just wondering if this is normal rates currently? Also do you always half to put 20% down? Other question I am thinking of paying off within the 5 years. Is paying off loan quickly a bad idea?
I am new to getting financing on properties as my other 2 properties I was lucky where the seller let me do payments to them directly on short 5 year loans at very reasonable interest rates.
@Brad Swaney You do not have to pay MI with 20% down payment although you can get 1 unit with15% down payment with MI. Have your tried getting 20 year fix that may lower the interest rate?
@Brad Swaney this is a commercial loan product and is fairly standard I guess. Have you exhausted all your Fannie/Freddie conventional loans?
With an adjustable rate you’ll probably want to refinance in 5 years or pay it off.
How many conventional loans can one person qualify for?
Currently have 2 private loans that I am paying back original home owners.
1st loan $15,000 left for House
2nd loan $18,000 left for Condo
Then have one conventional loan that I owe $10,500 left on it.
First glance on your new condo loan says you're lucky to have anyone funding loans that are so small. Take it and pay it off within 5 yrs.
You have 2 land contracts I'd guess? I'd get those paid off and get ownership. Right now you are just hoping your seller doesn't get a judgement attached to 'your' houses.
Conventional loans are pretty easy (small amounts aside) to get up to 4. I'd pay off that 10k one as you get to your 4 limit to free up a larger loan. Treat them like car loans and pay them off, seller financed first.
you can get 10 finance property as per Freddie Mac/ Fannie Mae limit. Don’t fall for local bank overlays at 4 limits. Try using a mortgage broker who will be willing to do 10 finance mortgage property.
Best of luck!