Updated over 3 years ago on . Most recent reply
Opinion evaluating two loans
I am looking to complete a DSCR loan with cash out for additional investments; I have received two offers.
The first is a 70% loan to value, 6.92% interest fixed for 30 years, 1.75% points, and a 5-year sliding prepayment.
The second is a 75% loan to value, 8.25% interest fixed for 30 years, 1% point, and a 3-year prepayment penalty.
Let's say the home value is $200K (close to what I am working with). At this time, I have no intentions of selling in the next five years.
Which of these is the better deal and why?