How do loans stack up

[Kiah Hochstetler]

After shopping the market my wife and I are about to add our second home to our portfolio. The first home was rented out when my wife and I took a 1 year sabbatical from the US lifestyle by moving to Ecuador. We are home now and ready to add to our portfolio. After shopping some of the different mortgages out there we are still at a lose of which one would be the best "deal" for us. 

There is a number of them that claim to not have origination fees, but they do have other and there are a number of ways to structure these. 

At the end of the day what should we be looking for if we plan to flip within 2-5 years?

[Darren Eady]

You'll pay origination fees in one of three ways, the seller can pay it by building it into the price of the home, you can pay it cash, or the lender can pay it by using a higher interest rate to produce a surplus from the secondary market large enough to cover the origination fee (usually anywhere from .25 - .75% higher than if you paid the origination another way).

If you can build the origination fee into the price of the home and have the seller cover it, that will typically be the best thing.