Posted by Carlos on April 02, 2003 at 16:56:25:
Great advise…thanks.
Multiple properties in one loan. - Posted by Carlos
Posted by Carlos on April 01, 2003 at 14:43:21:
I have two duplexes and a small house…I would like to refinance all under one loan…since one payment for all 3 will be a lot less than the 3 payments that I have now.
Does anyone knows of a bank that does this type of loans?
Re: Multiple properties in one loan. - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on April 01, 2003 at 17:48:10:
Think about this for a moment. If you have 3 separate loans, you can sell any of these properties at any time without affecting the other. If you put a blanket mortgage on all 3, you will not be able to sell them individually without an inconvenience at a later date.
Other than some refinancing costs for a new blanket loan, how is it that you can save money on 1 blanket loan instead of 3 individual loans? Quick thinking in my head believes that $300k @ 6% would be about the same payment as three $100k loans @ 6%. What makes you think that it will be ‘a lot less’?
Re: Multiple properties in one loan. - Posted by Carlos
Posted by Carlos on April 02, 2003 at 09:31:49:
Tim,
Thank you for the advise…and I understand that if I need to sell one property, I will have to refinance this loan…but I’m planning to keep these properties for a while and use the cash flow to buy more.
The total of my 3 payments is $1,768.00 and the total payment if I open a Blanket loan (Thank you for the term)will be $1,378.00…so I will have $390 more per month.
The reason it is less is because each loan has a different term and interest rate…also each loan was opened at a different date. My payoffs are less now…but my payments are the same.
Do you know of any lending institutions that work with Blanket loans?
Re: Multiple properties in one loan. - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on April 02, 2003 at 21:15:06:
For a blanket loan, you could try Washington Mutual. There are probably others as well as using your local lenders in the area.
Re: Multiple properties in one loan. - Posted by JT-IN
Posted by JT-IN on April 02, 2003 at 15:54:11:
Carlos:
“I understand that if I need to sell one property, I will have to refinance this loan”
Not necessarily so Carlos… If you sell one property of a multiple property mortgage, you simply negotiate with the Lender for a “partial release”. In this instance, the Lender accepts a partial principle payment from the sale of one property, (even allowing you to pull out the equity of that sale), and reduces the amount osed by the prepayment. The only downside is that not in all cases can the loan be reamortized to accomodate a smaller payment, but this will vary from Lender to Lender. This approach doesn’t allow maximum flexibility, but it can be done and there may be some benefits in way of origination costs of a new loan.
Just the way that I view things…
JT-IN
Re: Multiple properties in one loan. - Posted by carlos
Posted by carlos on April 03, 2003 at 10:28:49:
Tim,
Thank you for the info…I will call Washington Mutual today.
Re: Multiple properties in one loan. - Posted by Carlos
Posted by Carlos on April 02, 2003 at 15:58:43:
JT,
Thank you for the advise…do you know any banks that work with a blanket loan? Most of the banks use this type of loan for construction…
Re: Multiple properties in one loan. - Posted by JT-IN
Posted by JT-IN on April 02, 2003 at 16:54:07:
Carlos:
No specific recommendations, but I have had these type of loans before, so it just a matter of shopping for the right deal. You may want to check with several Commercial Loan Officers at your local Comm’l Banks… At the very least, these will be great contacts.
JT-IN