All Forum Posts by: Chris Kendrick

Would doing an interest only mortgage be the cheapest for lowest monthly payments, i want to get the most cash flow as possible, is the interest rate on that higher or maybe doing like a 5 percent 5/1 arm be better or lower payment, what eveyone thinks

interest only is fine if you are willing to add principal, it would hurt cash flow.

i always purchase arms.

i am not worried about house prices going down.

How is intrest only will hurt cash flow???

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Quote from @Chris Seveney:

Quote from @Chris Kendrick:

Quote from @Chris Seveney:

@Chris Kendrick let’s say your rate is 6% today but in 5 years it’s an arm, housing pricing has dropped 15% so you are under water and at the 5 year mark the loan resets to 12%.

Then what do you do with an underwater property and your payment more than doubled

My max cap after 5 yrs would only be 7 percent so I would never get higher than that

who is the lender? cap at 7% wow. thats an unbelievable deal. your sure its not prime + 7%?

Not the max ever
At end of 5 yrs the rate can only go up as much as 2% even if current rate is 12
Then in another 5 yrs it can only go up another 2% max

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Quote from @Chris Seveney:

@Chris Kendrick let’s say your rate is 6% today but in 5 years it’s an arm, housing pricing has dropped 15% so you are under water and at the 5 year mark the loan resets to 12%.

Then what do you do with an underwater property and your payment more than doubled

My max cap after 5 yrs would only be 7 percent so I would never get higher than that

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Quote from @Chris Seveney:

@Chris Kendrick

No. Too risky

Ask people who did arms and interest only five years ago how they are working out for them

Why i dont see anything wrong with it, seems alright to me, can you explain, if you can?

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Quote from @Joe Villeneuve:

What difference would an answer be now? It would just be a guess. When you have a specific property in mind, just go to any lender and apply whatever loan products they are working with at that time to that property, and you you'll have an accurate answer.

Um ok, i guess u dont know if its normally cheaper or not and why dont alot of investors go that route

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Quote from @Katherine Blazer:

Hi @Rick Dreyer Congrats on growing!! There are a few funds that allow second loans on investment properties. They have very specific guidelines. Cash-out refinances are a little easier and you can use DSCR loans. It sounds like where rates are currently might make the ratios tight. One last option is a no-ratio loan, they normally do lower LTV.

Dscr loans have high rates though,

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Quote from @Eliott Elias:

My DSCR loans are requiring a 6 month seasoning, if you're stuck at a 12 month seasoning there is nothing you can do about it.

What is your rate on that dscr loan, probably like 10 percent?

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Cash out question

My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.

I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.

How is anyone getting all there money back?

1 Vote

All Forum Posts by: Chris Kendrick

Chris Kendrick has started 32 posts and replied 191 times.

Post: Cheapest mortgage loan

Post: Cheapest mortgage loan

Post: Cheapest mortgage loan

Post: Cheapest mortgage loan

Post: Cheapest mortgage payment

Post: Cheapest mortgage payment

Post: How to find lenders for multiple refinances?

Post: Cheapest mortgage loan

Post: Cash out refi seasonal period

Post: Cash out refi seasonal period