Posted by Michael Morrongiello on January 22, 2001 at 15:54:59:
There would be NO points, NO application fees, NO prepayment penalty in the financing, NO PMI premiums, NO lender junk fees for underwriting, warehousing, etc. and NO requirement to prepay an escrow impound account for taxes and insurance above and beyond your $17K cash down payment.
An 85% LTV 1st lien would be $144,500.00 that could be written @ 11%-to 11.5% interest rate range. At the 11% rate Amortized over 360 months payments would be $1,376.11 in monthly P&I, no balloon payment and NO prepayment penalty either.
Under ideal circumstances (your credit, cash down, the condition, location, and current rental income of the property, etc.) This note could be converted into a lump sum payout in the $137,000.00 -$138,000.00 +/- range. The seller would still hold a smaller 2nd lien of $8,500.00 that they would retain.
Contact me for more input on how this might work.
To your success,