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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (40660)	9/5/2005 7:09:38 PM
From: John Vosilla	Respond to of 306849

I've seen some of those 1% starter rates up to a million. If that is the case 1% amortized over 30 years without escrowing taxes and insurance can get them in at only $2570 a month. Any 18 year old can make that in a month from working the paper route before school and McDonalds after school<g>

To: Lizzie Tudor who wrote (40660)	9/5/2005 8:49:40 PM
From: X Y Zebra	Read Replies (2) \| Respond to of 306849

lizzard, i am not privy to the specific rate negotiated. all i am trying to illustrate is how easy is to calculate the payment. if you believe that the interest is 10% p.a. then simply replace such variable... (you could even create a table with an excel spreadsheet and calculate an 'heat-of-payment-index' -gg meaning at what rate does the payment become too hot for each payor as for current conditions on mortgages, the recent short term mini trend has been DOWN (mostly following the 10 year note) This is for commercial RE loans... i am not all that familiar with residential stuff, but i imagine it is lower.... current 10 year note is 4.04% smartmoney.com for residential stuff try this: bankrate.com here, following the instructions it yield me the following: bankrate.com now.... as you can see rates range from 5.25% to 6.00 % at the lower 5.25% rate would yield (on an interest only format) a payment of $3,495.63... however, in the web page above they are amortizing it over 360 payments (30 years) payment (for the lower rate) is $4,412.00... and yes it is a jumbo loan. 6.5% seems low for that high of a loan esp no principal. not necessarily... particularly if it is purchase money (as opposed to re-fi, or re-fi with cash out)