Apartments: Should You Refinance
Is it time, or past time, to refinance the loans on your apartment buildings? Using programs offered through HUD, you should be able to get a loan with the following terms.
Assuming the above facts and the loan balance of the existing debt is $831,155.10 with a 1% Prepayment penalty, a due date in 82 months, an existing interest rate of 7.45% and the owner plans to sell in 60 months, should he refinance?
Interest
Rate:
|
3.9%
|
Term:
|
35-years
|
Personal
Guarantees:
|
None
|
Loan-To-Value:
|
80%
|
Does it sound too good to be true? It might be and in order to make the right decision you need to hire a professional who has expertise in present value analysis. Below is some information on a potential refinance.
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Send me your email address or Tweet it and I will send you the answer on Friday, April 27th
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