high interest rate - Posted by Bettina Ayers

Posted by Frank A (WI) on June 15, 1999 at 17:46:49:

Considering that the average 30 year fix is at about 7.725, 7.125 is high for an ARM but is a very good rate if it is on a 30 year mortgage. But we don’t know that, do we!

What is the amount of the mortgage over what period of time?

What area of the country are you in?

Good luck!!

Frank A (WI)

high interest rate - Posted by Bettina Ayers

Posted by Bettina Ayers on June 14, 1999 at 18:37:16:

I am in the process of buying a property and the interest rate is adjustable and very high (7.125). The current owner is already paying $400 dollars out of pocket on top of the 1500 rent he collects. How can I change this? Is this possible to change with a wrap around mortgage? The owner says its the escrow that makes him lose the extra 400 a month. Is it fixable or should I just walk away.

Re: high interest rate - Posted by Scott Moore

Posted by Scott Moore on June 15, 1999 at 07:27:37:

7.125% is a very GOOD rate for investment property. How do you come about this as being a high rate???

Look into the escrow account and see why it is so high, like how much taxes are, how much his current insurance is (and see why the insurance is so high if it is).

Re: high interest rate - Posted by Redline

Posted by Redline on June 14, 1999 at 20:06:51:

Around here 7.125 is not very high. In fact, it’s the going rate right now. They’ve risen in the past 2 weeks - and they’ll probably rise again shortly.

RL