100 Percent Financing on Investment Property [mortgageloan-processor.blogspot.com]
Question by firstsgt35svs: How do you find the monthly payment on a 0,000 25-year mortgage at 12 percent interest compounded monthly? Best answer for How do you find the monthly payment on a 0,000 25-year mortgage at 12 percent interest compounded monthly?:
Answer by Artemisc
Do a search on "mortgage calculator", a lot of bank websites have them. And keep in mind that you have to pay home owner's insurance and taxes. If you are going to escrow them, then they need to be added into your monthly payment. One more thing, 12% is horrible.
Answer by Sean Roberts
The easiest way to do this is to calculate the effective interest rate. The interest rate with compounding is called a nominal interest rate. The rate with after compounding is called the effective rate. Twelve percent compounded monthly is the same as 12.683% effective rate with no compounding. Your monthly payment excluding property tax and insurance will be $ 1,104.03. Your $ 100,000 loan will cost you $ 231,209 in interest. The current interest rates for a 25 year loan these days is about 3.5%. If your credit is poor it may be a little higher.
portlandmortgageresource.com Founder Todd Gydesen (pronounced "Get Us In") talks about several 100 percent loan programs available in the Portland area. One of them is called the USDA Rural loan. Find out how this loan works and where it's available by watching the video.
mortgageloan-processor.blogspot.com How to get a 100 percent mortgage by going country
The days of obtaining 100 percent financing on investment property from bank mortgages are over. There are government programs for first time home buyers, but that excludes investment properties. The traditional methods of buying property with no money down all include owner financing. Here are some examples:
Wrap Around Mortgage: This is where a seller finances the property by obtaining a new mortgage that is more than his or her existing mortgage. The seller charges the buyer a higher interest rate in most cases.
Seller-Financed Second Mortgage: Here the buyer gets a new first mortgage and the seller issues a second mortgage in lieu of a down payment. Most lenders will not issue the first mortgage if the second mortgage is done at closing, so this is best done privately between the buyer and seller.
Bond for Deed or Land Contract: Here the buyer assumes responsibility for the seller's existing mortgage.
The bank with the existing mortgage can't stop it because title to the property does not actually transfer to the buyer until the existing mortgage is satisfied.All out owner financing: It is rare to find a seller who has no debt against a property, but they do exist. When a seller has no debt they can finance the full amount of the property investment. This is attractive to some sellers because they usually will get a higher price than on the open market, and they receive interest on the amount financed.
After the Savings and Loan crisis there were many investors who bought property through the Resolution Trust Corporation for pennies on the dollar and turned around and owner financed sales of the real estate they bought. We will likely see something similar coming out of the current housing crisis.
If so, it will be a hey day for savvy real estate investors. Find More 100 Percent Financing on Investment Property Articles
