All Forum Posts by: Ethan Kramer

UPDATE: I talked to a mortgage specialist from WellsFargo and I was able to secure a 3.25% interest rate and 15 years at 25% down payment with zero origination fees. Only around $195 per month more than the 30 years term at 4% interest rate, so I decided to go with 15 years, especially that the property will rent at around $1,500 per month. So glad I asked you guys, it is truly important to shop around!

 You are correct.

My apologies, I just reviewed with the lender and the major fees are:

$2,850 origination charges

$1,100 underwriting fee

$1,949 transfer taxes

$2,310 property taxes and homeowners insurance

$900 homeowners insurance premium

Total Loan Costs (A+B+C): $6,220

Total Other Costs (E+F+G+H): $6,169

My FICO is 714

 Mortgage broker. I have reached out to PNC and will talk to them tomorrow morning. Hopefully I will find something significantly better.

 $4,200 in taxes (prepaid costs), $8,200 in closing costs

 Conventional mortgage. Thinking the same thing, thank you so much!

That's what I thought, the numbers seemed way too off. Thank you, guys!!

I'm currently under contract for a turn-key investment property in Baltimore City that is valued at $129,900. I just received the documents from my lender showing total estimated closing costs of $12,400, making the estimated cash to close $38,400. I am putting down 20%.

$8,200 closing costs

$3,600 prepaids

The interest rate is 5%, almost $4,000 origination charges. I feel like it is too much? Should I look for another lender?

@Steven Foster Wilson Thank you so much for your helpful response. I totally forgot that I couldn't get more than 4 units through FHA.

Right now, I have a property in Baltimore that has been generating income since September 2019. Once I have 2 years of experience as a landlord in September 2021, would I be able to qualify for something like a 10-unit apartment building that costs $1.5 million using the future income? I plan to use FHA for this kind of purchase too.

Currently, my income to debt ratio is about $3,500 to $1,100 (I split the $1,100 mortgage 50/50 with fiance and have no other expenses). Let's say the 10-unit apartment building is fully leased at $15,000 per month. At 75%, would I be able to add future $11,250 / month income to my current income to debt ratio to help me qualify for the apartment building? Is this possible?

If it helps, my primary residence, where the $1,100 / month mortgage comes from, is valued at $310k and I have $150k equity in the property. I am willing to rent it out at $2,500 / month and move into the apartment building for one year to meet the FHA requirements. I am also willing to refinance or HELOC the $150k equity if it will help with the $70k cash I have saved so far.

Thank you so much for your time in reading my question. Stay safe and happy investing!