Posted by Dimpil on October 10, 2003 at 17:18:51:
I like SouthStar Funding for this. Quick fast and easy. However, you would need to do a 75%/25% if you still want to go no doc with them. You also need a 650 middle score. You would also want to get it with caps and the rate adjusting every 6 months. You need to show 2 or 4 months reserves with them.
If Broker Funding Solution, Union Planers or Sun Trust lends in your state, have your broker check them out also. Broker would be my second choice for interst only. They have really the best products but slow has heck too me.
With interst only, you want below prime and have choices of 5 years 10 years and can get fix the rate at any point during the years. For the 2nd I’d go with GB Home Equity as they have a 4% interst only HELOC.
Example of interst only payment:
420,000 * 75% = 315,000 loan amount
315,000 * 3.75 interst only rate = 11,812.5/12= 984.38
2nd as a HELOC with GB & assuming 60,000 line (but payments are based on what you take out only)
60,000 * 4% = 2,400/12= 200 payment
You still have equity available.
Why pay the principal when you are going to sell in a short time?
Just a thought.