Real Estate Forums

San Diego Real Estate · 04-24-2005, 11:01 AM

We are starting to see 40 year notes in the San Diego Real Estate Market! Due to the hight price of homes! I bet we will start to see even 50 year Notes soon with the prices of homes here!

Anyone else seeing 40 year notes in your market? Anyone have any thoughts regarding the 40 year Notes?

Las Vegas Homes · 04-24-2005, 04:40 PM

SDRE, I have heard of the 40 year note but haven't seen any to date. With you’re market, banks simply must be creative to enable the average person to obtain a loan. I think it's a win, win situation for everybody. It will put more people in the market and the banks will like the higher interest rate they can charge.

afm1 · 04-25-2005, 12:53 PM

40 year notes are becoming more and more popular. You do apply a few dollars towards principal but it is very similar to an interest only payment.

Some investors now have a 3/37 ARM.

Las Vegas Homes · 04-26-2005, 12:17 AM

Wow! A 3/37. It doesn't surprise me. I would like to see the matrix for that program.

San Diego Real Estate · 04-26-2005, 12:21 AM

Quote:

Originally Posted by afm1

40 year notes are becoming more and more popular. You do apply a few dollars towards principal but it is very similar to an interest only payment.

Some investors now have a 3/37 ARM.

afm1...glad to see you here!

afm1 · 04-26-2005, 11:06 AM

SDR, glad to be here.

The matrix is the same and the qualifications are the same. They simply stretch the payment out for you over the 480 months vs the 360 months. Use your mortgage calculator and you will see the difference. It really does help. Either one, interest only or the 40 year term is best.

3/27 vs 3/37 do the math. It may help with some of your borrowers in the future. But, best of all, it allows them to buy more house.

REMAX LV · 04-27-2005, 10:09 AM

This does sound like a good product, especially in todays market conditions.

Portland Real Estate · 05-02-2005, 09:48 PM

Just can't see myself still paying off a debt at 80

Las Vegas Real Estate · 05-02-2005, 11:28 PM

A friend of mine has an interest-only loan on her home in Idaho and loves it. The rate is set at prime; some months she pays just the interest and some months she pays a huge chunk...and the equity is a line-of-credit that can be pulled back out again if needed.

That 3/37 sure sounds interesting, too. I'll have to look into that. Thanks.

afm1 · 05-03-2005, 07:32 AM

portland,

The theory is that it gets them in the house. Less than half a percent of Americans get a 30 or 40 year mortgage and keep it for the duration of the terms. They do one of two things....refinance or sell.

LVR, Great product!! I have an interest only on my house and do the same thing. Why let the bank earn the interest when it frees up monthly cash flow for the borrower...oh and the best part for agents....it allows the borrower to buy more house.