Loan Programs Archives — Muth Capital, LLC

Why A 30-Year Loan Is Better Than A 15-Year Loan On Rental Properties

28

Jul

0 Comments

Loan Programs, Mortgage15 year mortgages, 30 year mortgages, mortgage loans

Why A 30-Year Loan Is Better Than A 15-Year Loan On Rental Properties

15-year loans may appear to save money over 30-year loans because they have a lower interest rate, but you may want to have the flexibility of a 30-year loan. Buying rental properties is a great investment, especially when you are able to use a mortgage to buy the properties and still get great cash flow. Many investors will get a 15-year mortgage because the rates are a little lower and they can pay off the properties quicker. However, a 30-year loan when buying rental properties can offer more cash flow. Plus, the flexibility of having greater cashflow to buy more…

What Is a CMBS Loan? Your Guide to Commercial Mortgage-Backed Securities

Those in the business of buying and selling commercial real estate have likely heard about CMBS loans. This is a guide to how CMBS loans work, the ways in which they are different from traditional commercial loans, and the advantages and disadvantages of choosing this type of financing. CMBS loans are also known as commercial mortgage-backed securities or conduit loans. These loans are used to purchase commercial real estate buildings like multifamily living communities, office buildings, or warehouses. They typically offer flexible underwriting standards and use the property as collateral. That said, a CMBS loan is different from a traditional…

What is a Rehab Loan?

A rehab loan is also referred to as a renovation loan and it will allow property buyers to finance both the purchase / refinance and rehab of a property through one mortgage. If you are planning on flipping houses for profit, you will likely have to make significant repairs and renovations to the house. In order to do this, you’ll probably need a rehab loan to pay for the property and its repairs so you can sell it at it’s new value. There are three main types of rehab loans for investors you should know about: 1. A FHA 203(k)…