All Forum Posts by: Saran Mandhadapu

 Hi Gino, watched your and your partner Jake's youtube videos last few days and were very informative. This is my second deal. For my first deal that I closed in Dec 2016, I called more than 7 banks local to the property, most of them are small banks. Most of them had 25% down payment or had fees for refinancing elsewhere within the first 5 years.  For second deal I called few more banks. I did find one bank offering 25 YR amortization, but their interest rates and fees were high and their down payment was 25 years.

For my second deal I chose the same bank that financed my first deal. He is offering me 4.9% 5 YR fixed (or 5.9% 10 YR fixed), 20 YR term, 20 YR amortization, no refinance fees, no balloon, origination fee of $1000, doc fee $200 for a $140,000 loan amount.

So with your deal, how long is 4.4% rate fixed? Is it fixed for 10 YR?

Thanks for the feedback Marc.

 Yes. The bank sent a bid for appraisal and will choose the lowest bid. Title and insurance is something that I shop around. There are no environmental surveys for this property. This bank and all the banks I called (10 banks) only offer a maximum of 20 year amortization. But they only take 20% down payment. The 5 YR fixed rate is 4.9% and 10 YR fixed rate is 5.9% (these are negotiated rates).  I am not sure how you got 4.6% interest rate after the rate increase by Fed in December. 

Sorry, it is not based on wall street journal prime rate + 3%. I spoke to my banker just now and he said after the initial 5 YR fixed term, the rate fixes again based on 5 YR Federal Home Loan Bank Rate + 3% which today is 2.3% + 3% = 5.3%. He did quote me a rate of 5.3% initially and I negotiated it down to 4.9%. I think the 5 YR federal home loan rates are listed in the below link.

http://members.fhlbdm.com/advance-rates/3/

 Thanks all for the feedback.

After 5 years, the rate fixes again for another 5 years based on Wall Street Journal Prime + 3 %. He quoted me 5.3% for 5 YR Fixed, I am negotiating the rate down to 4.9%.

He also said he can give me 5.9% for 10 YR fixed but I am planning to choose 5 YR fixed. There is a difference of $70 per month in payments between 5 YR and 10 YR which equates to $4200 for 5 YR.

The Origination fee is $1000 and doc fee is $200 for the $140,000 loan amount.

 Hi Kenneth, thanks for your feedback. After 5 years, the rate fixes again for another 5 year based on Wall Street Journal Prime + 3 %. He quoted me 5.3% for 5 YR Fixed, I am negotiating the rate down to 4.9%.

He also said he can give me 5.9% for 10 YR fixed but I am planning to choose 5 YR fixed.

Hi,

I am purchasing a multi-family unit for $175,000. Here are the loan terms I received from a bank, please let me know if this is good in current market. This is a commercial loan.

Interest Rate fixed for 5 years = 4.9%

At the end of 5 years, the rate fixes again for another 5 years

Loan term = 20 years

Loan amortization = 20 years

Down payment = 20%

Location = York County, PA

No pre-payment or refinance penalty and no balloon payment.

Hi,

I am purchasing a multi-family unit for $175,000. Here are the loan terms I received from a bank, please let me know if this is good in current market. This is a commercial loan.

Interest Rate fixed for 5 years = 4.9%

At the end of 5 years, the rate fixes again for another 5 years

Loan term = 20 years

Loan amortization = 20 years

Down payment = 20%

Location = York County, PA

No pre-payment or refinance penalty and no balloon payment.

 Thanks Matt. My property is in York County, PA. I will keep looking.

 Hi Matt, I am in PA too and I have a 5 unit multi-family home under contract for purchase and looking to finance it. Can you tell me which bank are you working with? I have called many banks I can only find 20 Year max amortization.  30 year amortization with 15 year fixed term @ 4.6% with 20% down seems to be a good deal. Can you help me with the bank name and the lender contact information please?

Thanks,

Saran