Looking for the impossible - Posted by John

Posted by Brian (WA) on April 17, 2007 at 20:52:46:


You are right both term and rate are important but term is more important. But the note rate and effective rate are typically two different numbers and the term determines your effective rate.

By terms, I am talking about the term on the loan. For example if you are getting a 30yr fixed rate loan what is the term 30 years right? Your payment is fixed and that’s it, not so great, and the effective rate you pay depends on how long you hold the note. If you keep the loan for the full 30 years your note rate will take effect on the 30th year.

What if your term could be 5 years or 10 years? Your note rate might be higher than a ‘great rate’ but your effective rate will be significantly better saving you tens of thousands of dollars.

I can understand your frustration with all of the ‘predators’ but I’m not sharing information with you for a better yield spread and if that’s what my response seemed like I apologize.


Looking for the impossible - Posted by John

Posted by John on April 16, 2007 at 20:31:44:

I’m trying to find a lender that will do a non-owner occupied refi from an all cash buy(no liens), and on top of that use the new apprasial(after repairs) for LTV consideration. And of course a No seasoning requirement and have great rates…


Do These All the Time - Posted by Jimmy

Posted by Jimmy on April 18, 2007 at 07:02:21:

what you describe is exactly my business. But I don;t waste my time with home mortgage lenders. I use a business banker. seasoning is never an issue.

Re: Looking for the impossible - Posted by Brian (WA)

Posted by Brian (WA) on April 17, 2007 at 17:22:24:


That is not impossible but you should be looking for great terms instead of rates.


Re: Looking for the impossible - Posted by Ben Carmona

Posted by Ben Carmona on April 16, 2007 at 23:42:13:


There are 2 types of loans that this can be done under.

  1. Cash Out with no seasoning to use the new value. Only a few lenders that can still do this.

  2. A refinance that recoops only the purchase money used to buy the property. No additional cash beyond that. Has to be done within 90 days of the original purchase. Have to proove that down payment funds came from your own seasoned source. Interest rates based off normal refinance and not cash out. LTV based off real value an not the purchase price.

You should work with a nationwide mortgage consultant that specializes in investment loans like these.

Ben Carmona

Re: Looking for the impossible - Posted by john

Posted by john on April 16, 2007 at 20:34:58:

I should also state these are 4 unit or less properties and super credit with large savings and low DTI with rents(signed leases) that are around 1.5 DCSR (yeah I know residential but you get the point!)

Re: Looking for the impossible - Posted by John

Posted by John on April 17, 2007 at 19:58:56:

Terms instead of rates? These are long term holds. Why in the world should I be more concerned of the terms of the loan? Both are important but a lower rate equals more cash flow. Why do I get the feeling YOU are looking for a better yield spread?

I messed up posting this I suppose, i’ve gotten tons of help (solicits) from brokers when I was looking for somebody to tip me off on a certain bank or type of bank I should be asking for, i.e. washington mutual. Are there more predators than prey on this website?