All Forum Posts by: John Bianco

I hope 6.5% is just an example! Seems high in today's market

It will be the most work but you can get up to 90% financing via SBA 504

1% is pretty standard

Never just go hunting for the cheapest fee though! Compare what the broker charging you 0.5% has to offer vs what the broker charging you 1% has to offer. Sometimes it may be worth paying 1% if it means saving .25% in interest rate per year over a 5-10 year loan.

Absolutely consult with a mortgage broker before putting money down/going to contract.

Consider how far you are from saving up for a down payment though. No need to consult a mortgage broker if you think that it will take you another year (for example) to save for a down payment. A lot of answers can change in that time. 

However, if you are very close to your down payment call, go ahead!

455,000 @ 4.75% = $28,482/year

455,000 @ 5.25% = $30,150/year

Paying a $4,550 origination fee pays off in year 3

(assuming their are no other difference - both of the attachments above are for the 4.75% rate)

Are you an individual shareholder or seeking a loan on behalf of the underlying coop?

Why do you want "owner occupied financing"? Why not rent the 4th unit and treat it as a true rental?

Why private instead of bank?

Typically 5,7 and 10 year terms over a 25 or 30 year amortization.

75% LTV on purchase, 65% on re-fi's.

Others are correct in that you need to qualify as a sponsor however, that becomes less important in a strong market.

It's tough to generalize because there are so many factors involved to determine rates and terms but hopefully this answers your question at a surface level.

A mortgage broker can be very helpful...yes, you will pay, but the amount you'll save in debt service by leveraging a broker's relationship will likely pay off hand over fist.

Take a mortgage against the building