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Updated over 6 years ago on . Most recent reply
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Recent Mortgage question
I recently purchased a condo for $32,500. This is a condo I am renting out. Bank asked for 20% down plus fee's. Rate is 6% for 5 years then adjustable after that on a 20 year loan. Just wondering if this is normal rates currently? Also do you always half to put 20% down? Other question I am thinking of paying off within the 5 years. Is paying off loan quickly a bad idea?
I am new to getting financing on properties as my other 2 properties I was lucky where the seller let me do payments to them directly on short 5 year loans at very reasonable interest rates.
Most Popular Reply
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- Rental Property Investor
- East Wenatchee, WA
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First glance on your new condo loan says you're lucky to have anyone funding loans that are so small. Take it and pay it off within 5 yrs.
You have 2 land contracts I'd guess? I'd get those paid off and get ownership. Right now you are just hoping your seller doesn't get a judgement attached to 'your' houses.
Conventional loans are pretty easy (small amounts aside) to get up to 4. I'd pay off that 10k one as you get to your 4 limit to free up a larger loan. Treat them like car loans and pay them off, seller financed first.