Portfolio Mortgages Good or Bad?

[Jorge Ruiz]

Hello BP! Was looking at what different banks have to offer. Ran across something called a portfolio mortgage. This is what I am seeing:

• Initial interest rates are lower than traditional fixed rate home loans
• You'll enjoy a guaranteed interest rate for up to 10 years
• Gives you the most home for a low initial payment

This all sounds good. Is there any cons? I do plan on using the BRRRR strategy.

Looking forward to your responses BP. Thank you.

Best, 

Jorge

[Shaun Weekes]

Originally posted by @Jorge Ruiz:

Hello BP! Was looking at what different banks have to offer. Ran across something called a portfolio mortgage. This is what I am seeing:

• Initial interest rates are lower than traditional fixed rate home loans
• You'll enjoy a guaranteed interest rate for up to 10 years
• Gives you the most home for a low initial payment

This all sounds good. Is there any cons? I do plan on using the BRRRR strategy.

Looking forward to your responses BP. Thank you.

Best, 

Jorge

I would only recommend using a portfolio loan if you can't qualify for a traditional loan. If you need the money quickly then a private or hard money lender would fit the bill.

Really the best thing to do is to find a broker or loan officer that has experience and then have them do the leg work for you. At that point they can point out all your options and you can make an informed decision based on their expect analysis.

I hope this all helps and have a great day.