Friday, November 30, 2007

Where's Waldo?

I was embarrased today to look down and realize that it's been almost the whole week since I've updated the blog! This week, I've been spending time behind the wheel or in front of people, not at the desk.

Lots of great stuff going on, including an owner-occupiped property purchase at 90% LTV. This property may be eligible for a 30-year amortization.

The 30-year amortization is the newest crush I have. I've seen experienced commercial realtors and bank officers get pretty surprised when I show this product. When cash flow is the imperative, (and for most business owners, that's going to be the case), the math can be pretty impressive. On a 90% purchase transaction for a $300,000 property, the difference between the usual 15-year amortization and at 30-year would be $435 a month -- $5,184 per year. That's assuming that the 15-year loan has a lower interest rate, which isn't always the case.

Now that loan isn't for everyone. If your goal is to actually physically own the property, you should explore a 15-year fixed rate loan. (Fortunately, I can find that for you too.) If your first priority is cash flow, let's run some numbers and find out if a 30-year loan works for you.

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