Mortgage rates?

[clintboling00]

I was considering buy a home/duplex and renting it out while i am in school. I can come up with a 10-15 % downpayment. But as I was searching I came across a 10 unit apartment building selling for 200k. To me it seems like I would be taking it big on buying my first property...but at the same time I would be adding about 2k extra income every month. Does anyone know what the average monthly mortgage rate is for a 200k with 15% down? Thanks

[joy]

As predicted, mortgage interest rates closed their latest rise, as muted economic data trimmed the rising pressure of earlier weeks. The average 30-year fixed-rate mortgage (FRM) drops a single basis point, closing the pricing at 6.37%. For Hybrid 5/1 ARMs, a decline of five basis points was noted, and that average finished the week at 6.17%.

[Lew-V]

i don't think those rate are going to apply to a 10 unit apartment building. you better call a lender that specializes in multi-unit apartment loans in your area.

[Gonetodocs]

Clint,
I agree with Lew on this one. If you follow that advice you could be in for a rude awakening when you talk to a Mortgage broker. I should know I am one and have been for the last 6-7 years. You might try the following website To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. I think they have some education on commercial mortgages. If not then try To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. but be careful you are searching for Multi-Unit (greater than 4) commercial education.

Good luck because it is not my specialty. I am focused on saving as many homes out of foreclosure as possible right now.

P.S. You have many variables here that should be considered before approaching the question of "what is your interest rate?" Like debt-to-credit ratio, recourse or non-recourse loan, Tax implications, and liability and insurance issues.

The homework is tedious and tremendous, I won't lie to you, but if you can find a good broker you can trust; pay him well and he will save you so many headaches and heartaches you wouldn't even begin to imagine. The good ones earn their money and then some.
Sincerely,
Gonetodocs

[Gonetodocs]

Originally Posted by Gonetodocs

P.S. You have many variables here that should be considered before approaching the question of "what is your interest rate?" Like debt-to-credit ratio, recourse or non-recourse loan, Tax implications, and liability and insurance issues.

Oh and the other thing to google is the analysis of capitalization rates, (essentially the value based on the net rent) which also begs the point of a solid understanding of Net-operating-income.

Study hard and be prepared. Have fun and happy investing.
Sincerely