What do these terms mean? Help Please?

[Cody Campbell]

20 year amortization

85% loan to value

floating rate daily is NYP + 0.25% = 3.75%

3 year mini perm 4.24%

5 year mini perm 5.20%

I am familiar with the 20 year term and loan to value. What would the rate be? I have not heard these terms before.

Thanks

[Arpan Patel]

: Let's go step by step:

20 year amortization (time it takes to pay back the entire loan. You can -for simplicity - think of it as the principal divied by the number of year - in this case 20 - that you would pay for each year to reduce the principal)

85% loan to value (This means that if the house is worth 100k, they will only loan up to 85 on the house)

floating rate daily is NYP + 0.25% = 3.75% (This means that you have a variable rate that coming out to 3.75% for now. This number is ultimately based on the LIBOR which is what people consider true cost of borrowing for zero risk - hugh banks in england borrowing short term money in small amounts from each other is considered as close to zero as possible. The NYP itself I am not sure what that is. I think it stands for New york prime but that is a bit of a guess. Ultimately you number will float with the LIBOR)

3 year mini perm 4.24% (Mini Perm loans are one of two things. They are either loans that are short term financing that give you time to find permanent financing or they are a certain period of often interest only loans that can automatically convert to permanent loan with the same institution. I've seen it described both ways. This is for a three options and below is for a five year option.) 

5 year mini perm 5.20%

I hope this helps