local financing 4.25% 1 yr arm - Posted by eric emmerich

import · October 29, 2003, 6:37pm

Posted by James Strange on October 30, 2003 at 19:30:56:

I am not taking on new customers at this time but I do enjoy advising people on the loan process. Sometimes it is simple details like this that can help someone out.

import · October 29, 2003, 6:37pm

Posted by eric emmerich on October 29, 2003 at 19:37:39:

Would I be crazy to try for a 1 year arm at 4.25% for non owner occupied investment property. Am searching for a property to but and this interest rate sounds good to get started with PMI as maybe I can get PMI off in a year with some sweat equity… What do the pro’s think?

import · October 30, 2003, 5:57am

Re: local financing 4.25% 1 yr arm - Posted by jeff

Posted by jeff on October 30, 2003 at 06:57:27:

I would pay extra interest in order to drop PMI. PMI is a waste of your money and interest is deductable. Most companeys will require a new appraisal to drop PMI and on investment property it will be less than 80% LTV, some even use 65% LTV on investment. The cool thing about a ARM is if you pay extra princapal the next rate incress is off the new princapal not the old balance so the rate could go up, but if you pay down some your payment may even go down. I personally hate PMI, I have had 2 loans with it and had to jump hoops to get it dropped. I used my appraisor on 1 and the mortgage co. would not allow his appraisal, they wanted me to use thier guy at $350 more, what a scam. A good deal is a good deal, but if you bank on getting PMI dropped after a short time please make sure you are right and can get it dropped quickly and easy. Good Luck
jeff

import · October 30, 2003, 5:09pm

Re: local financing 4.25% 1 yr arm - Posted by eric

Posted by eric on October 30, 2003 at 18:09:38:

Thanks Jeff for good thoughts about the interest is deductible, but inless I still come up with 20% down I would have PMI. So I dont know how to get around that.
Thanks
Eric

import · October 30, 2003, 6:19pm

Re: local financing 4.25% 1 yr arm - Posted by James Strange

Posted by James Strange on October 30, 2003 at 19:19:43:

Do two loans. One for 80% and one for the rest. Like an 80/15/5. 80% loan 15% second and 5% down and no PMI.

James

import · October 30, 2003, 6:24pm

Re: local financing 4.25% 1 yr arm - Posted by eric

Posted by eric on October 30, 2003 at 19:24:38:

You know this is Y this forum is so valuable, thank you for seeing what I may have been overlooking. Much Thanks
Eric