Posted by James Strange on January 12, 2003 at 04:49:04:
Yes most of the time you will pick the length of the loan.
Shorter loans have lower rates. And you pay off the property faster. Think about this if you owned a property free and clear. Would it cash flow very nicely?
Yes higher LTV loans will have higher rates.
As for the diference in rate, no standard answer. Different lenders have different rates.
Why are you going to call an RE agent? Would you call a plumber to replace a light switch?
Loan term and rate questions - Posted by Joshua
Posted by Joshua on January 11, 2003 at 22:25:43:
I’ve started to look at duplexes and have been looking to do my first L/O. Now my question is when I am to apply for a loan do I get to pick the term I want to use? Such as a 30 year loan or 15 year loan? I’m guessing yes. And if that’s the case then why would you consider a shorter loan on a property if it’s a cash flowing property? Would there be a reason why you would want a shorter term loan on a cashflowing property? Maybe there’s something I can’t see there?
And another question I have is about the rates for lending right now. I’ve heard that the rates are different depending on the LTV. So my question is what is the rate for an 80% LTV and a 100% LTV? I’ve been looking and can’t find the rates yet. I would just call a real estate agent but it’s the weekend and it’s late. I understand the pros and cons for 100% financing. I’m just curious of the rates.
Thanks,
Joshua