need some real estate financing help.

[tussking]

Interest only is often times good for investors, and for people who want lowest monthly payments, or people who don't intend to live somewhere for that long. after all, the average amount of time someone stays in a home is I think like 4 years if I'm not mistaken. At interest only, you can pay interest for however long you're allowed to, and then sell the home before it fully amortizes and your payment skyrockets, thats the logic behind it. I personally think a 5/1 adjustable is good, then you re-fi before the 5th yr comes up if the rates are low enough. refi costs are always going to be a few thousand due to all the processing and that kind of stuff, if someone tries charging you way way less, then they are just rolling the rest into a higher interest rate, either way you are going to pay for it

Mike

MIKE PLEASE LEARN FROM THIS THE RATES WILL NEVER BE THIS LOW IN 5 YEARS FROM NOW. DO YOU KNOW THE BOND MARKET HAS BEEN RISING DUE TO THE FED RAISING RATES? UNLESS YOUR CUSTOMER IS 100% SURE HE OR SHE WILL BE SELLING IN THE ADJUSTABLE RATE
TIME FRAME THEN YOUR GOING TO RUIN THEM.
THE MAJOIRTY WHO ARE REFI'ING NOW DOING THESE DUMB ADJUSTABLES WILL BE FORCED INTO FORCLUSRES WHEN THE MARKETS MOVE.

 

[Doughboy]

Not only that Doughboy, that was 2 years ago..dont see that being the case now.

Rates were much lower 2 years ago than today. You may be right, but I will check to see what is out there, and get back. But, like I said, I know for a fact that you can get a 10% bonus for an Allianz annuity today. That makes me think that there is an insurance company out there somewhere that will pay 8% for a first year of the policy before dropping it later. Also DTB should be able to better clarify what is out right now more than me, as I only do a policy here and there for my clients. I will call a few companies tomorrow to see what I can find.

 

[Agent 0659]

You might be right Dough. Hard for me to say on a Calif policy being in Indiana but 9% seems ridiculous.

 

[NySportsfan]

MIKE PLEASE LEARN FROM THIS THE RATES WILL NEVER BE THIS LOW IN 5 YEARS FROM NOW. DO YOU KNOW THE BOND MARKET HAS BEEN RISING DUE TO THE FED RAISING RATES? UNLESS YOUR CUSTOMER IS 100% SURE HE OR SHE WILL BE SELLING IN THE ADJUSTABLE RATE
TIME FRAME THEN YOUR GOING TO RUIN THEM.
THE MAJOIRTY WHO ARE REFI'ING NOW DOING THESE DUMB ADJUSTABLES WILL BE FORCED INTO FORCLUSRES WHEN THE MARKETS MOVE.

I was asked my opinion and I gave it. You don't have to agree, I was going based off limited information, I have no idea the owner's intentions with the property, their income, financial limitations, etc, you cannot recommend something without knowing the whole picture, I was asked my opinion and I gave it, I didn't come here to get a wise answer, everybody may have different takes and nobody can predict the future

Mike

 

[DOGS THAT BARK]

I am clueless on mortgage ins--never done any

Not much on real estate either but what I personally would do is go for 30 fixed and pay extra each month on principal if you can and pay it off much earlier, if young family starting out and run it to tough periods you don't have to pay the extra on the principal till you get back on your feet.
Makes it flexible with you controling the flexes