List real estate loan types and a hypothetical example of each with a national interest rate of 6.5% and total repayment amount

Include dscr and hard money loan, fixed-rate mortgage, arm, fha loan,va loan, interest only loan, ballon mortgage, construction loan, bridge loans

Response:

Absolutely, here are the various real estate loan types along with hypothetical examples using a national interest rate of 6.5%, along with the total repayment amount:

1. **Fixed-Rate Mortgage:**

Example: A $300,000 loan with a fixed interest rate of 6.5% for 30 years. Total repayment: $590,335.02.

2. **Adjustable-Rate Mortgage (ARM):**

Example: A $250,000 loan with a 5/1 ARM, starting at 6.5% for the first 5 years and then adjusting annually. Total repayment (assuming constant rate for simplicity): $491,175.84.

3. **FHA Loan (Federal Housing Administration):**

Example: A $200,000 loan with a 3.5% down payment and an interest rate of 6.5%. Total repayment: $397,331.94.

4. **VA Loan (Veterans Affairs):**

Example: A $350,000 loan with 0% down payment for a qualified veteran, at an interest rate of 6.5%. Total repayment: $689,652.38.

5. **Interest-Only Loan:**

Example: A $400,000 loan with a 5-year interest-only period at an interest rate of 6.5%. Total interest paid during interest-only period: $130,000. Total repayment (assuming principal and interest afterward): Varies based on remaining term.

6. **Balloon Mortgage:**

Example: A $150,000 loan with a 5-year term, amortized over 30 years, but with a balloon payment due at the end. Total repayment (excluding balloon payment): $102,999.09.

7. **Construction Loan:**

Example: A $500,000 construction loan for building a house, with interest-only payments during the construction phase at an interest rate of 6.5%. Total repayment (assuming interest-only payments for entire term): $325,000.

8. **Bridge Loan:**

Example: A $250,000 bridge loan to cover the down payment of a new home before selling the current home. Total repayment (assuming 6-month term): $257,500 (including interest).

9. **DSCR Loan (Debt Service Coverage Ratio Loan):**

Example: A commercial property loan of $1,000,000 with a 20-year term and an interest rate of 6.5%. The lender requires a minimum DSCR of 1.25. Total repayment: Varies based on property income and expenses, ensuring DSCR is maintained.

10. **Hard Money Loan:**

Example: A real estate investment loan of $100,000 from a hard money lender, with a 12-month term and an interest rate of 6.5%. Total repayment: $106,500 (including interest).

Please note that these examples are hypothetical and provided for illustrative purposes only. Actual loan terms, interest rates, and total repayment amounts can vary based on various factors.

Southeast NC, North Carolina

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