Posted by John Corey on May 03, 2006 at 02:22:31:
What you have presented is about right. Remember the closing costs (including the points).
On the other hand…
Hard money that requires a minimum credit score is not hard money. Lets call it non-conforming as that is Ed’s label.
The LTV at 90% of ARV is very high for hard money. Great if you can get it. Definitely one reason why a credit score is going to be checked.
8%-11% is really cheap money and 3-6 points is light to about right.
1-2 year prepay sounds very high but you did not say how large the pre-pay is. A pre-pay of 1 month given the LTV, the interest rate and the points would be fine to most borrowers.
You are not talking about hard money these terms. The terms could be just fine if all you need is the 620 credit score. You will have to make that decision.