All Forum Posts by: Michael A.

I’ve been researching alternative financing options for my second property. I have seen that New American Funding, Newfi, and Griffin Funding have a 40 year mortgage with the first 10 years being interest only while the remaining 30 years are a fixed rate. I’m located in Austin and a loan option such as this one sounds attractive in this highly appreciating market. I understand the opposition towards this type of loan product but I feel that this option is good for folks like myself who are limited on funds but would like to invest in RE for the long term. Having the extra money the first 10 years will help us stabilize until we’re ready to rent out the house and will give us the opportunity to perhaps save for another property instead of parking money in the house itself. If the interest rate is in fact fixed after the initial 10 years, does anyone know if the rate will be predetermined prior to closing on this 40 year loan? Or will the interest rate be determined later in the future? I’m wondering if I could perhaps secure today’s rates despite this being a hybrid type of loan. I have no plans of selling within the next ten years and will likely pass this on to my children . If anyone has any additional info about such loan products in the Austin area please kindly share any details you might have. Also, I’d love to hear what others have to say about such option whether they are in Texas or beyond. Thank you in advance.  

Do you see higher appreciation opportunities in these areas compared to New Braunfels, Converse, San Antonio, Seguin, or similar areas?

Can you recommend some builders that allow investors in or around Austin? Lots of them are not interested in selling to investors or second home owners  

Are homes in Cedar Park not obtainable for under 400k? I’m talking about a <1500 sq ft 3/2 house in a recent school district. Judging from recent sales history on Redfin it appears that Round Rock, Leander, Cedar Park, and the other surrounding areas have had some lower priced homes sell. I realize that this post was from months ago but would like to hear an updated opinion on how things currently stand in the market.