New York City, NY · Member since 2014 · 18 posts · 1 vote
I'm looking to figure out how to calculate the mortgage payments if I have a first mortgage that's interest only for say 1-2 years and then for a conventional mortgage (or if the interest rate changes after the initial interest only mortgage).
Does anyone have a resource or Excel spreadsheet for this or have done this type of calculation before?
New York City, NY · Member since 2014 · 18 posts · 1 vote
10y
Allow me to be more specific with an example.
For example, let's say I have a deal I found where the owner wants $1,500,000 for a 6 unit multi-family (this is NYC we are talking about).
30% down is about $450,000.
I want to be able to calculate what it would cost me if I got a hard money loan/first mortgage to get the funds for the initial $450,000 down payment (assume I have $100,000 I can put down towards this) and then calculate a conventional loan for the remainder.
I want to see if the numbers will work and what my options are for financing for this type of property.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
You could use a simple payment/mortgage calculator for the conventional, interest only of course would be simple. The problem is, this is never going to happen. Neither the HML nor conventional financing will take the 2nd position. You'll likely never get a property to break even, financing that much of the purchase price.