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Re: If its stictly an investment property... Posted by Randy Thatcher [Email]  (#22)  [Profile/Gallery]
(more from Randy Thatcher) on Fri, 12 Nov 2004 10:47:55
In Reply to: If its stictly an investment property..., KB900psi, Fri, 12 Nov 2004 10:31:04 Members do not see ads below this line. - Help Keep This Site Online - Signup |
I have an interest only 5/1 ARM at 4% on my condo. That's right, 4% flat. When I went to close it my banker told me I locked in the exact right day because it jumped a 1/4 point the day after, and was over a 1/2 point up when I closed. I plan to live here right up until it goes adjustable, at which point my wife will be an optometrist and we move elsewhere to start a practice.
California brokers offer negative equity very short term ARMs and many other creative mortgage products. I couldn't stomach the negative equity mortgage, and didn't understand the nuances. Turns out that broker was a bit of a fast talking schmoozer who said "don't worry about the rate, we'll lock you in at a good one when you're ready." I called saying I wanted a 5/1 interest only ARM, and he was about 1.25% above wells fargo. Nice talkin' to ya, buddy. I thought a broker's job was to find the best deal for the client, not himself.
My sister-in-law works in a mortage office in southern ohio and had never dealt with an interest only ARM ever. I told her I've made about 25% in a year in equity on a 1100 sq ft condo outside of SF. Why pay it down when I'm leaving in a few years? The gains in Ohio just aren't the same as CA. It's also good I got the ready to fix up, bank forclosed place in a very high demand complex. It's now fixed up with 2 new bathrooms, new kitchen with maple cabinets and granite, etc. I'll make a killing if the bubble doesn't burst!
If I can find another fixer-upper unit in this complex I may fix it and rent it, then sell in a few years...
I just need to get a fat equity line on my current place to finance the down payment on the other one, unless investment property loans are more forgiving...
Randy
posted by 69.105.72...
, Thu, 11 Nov 2004 22:42:03
, Fri, 12 Nov 2004 11:35:32, Fri, 12 Nov 2004 10:47:55 <-- Viewing This Message, Fri, 12 Nov 2004 10:57:30
, Fri, 12 Nov 2004 04:12:31
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