- Joined
- May 12, 2008
- Messages
- 172
Hi!
We are closing end of june on a freehold townhome for $240k with 25% down. We also have a 2 yr lease signed by prospective tenants for $1500/mnth
Monthly break up:
Taxes $225
Insurance $50
Mortgage on 30 yr amortization at 4.25% variable 5 yr rate $881; or mortgage fixed rate 5 yrs 5.25% $987
int only pymnts on secured LOC for downpymnt $235
Cash flow of $109 if go with variable rate right now rates will increase in next few yrs so this will decrease
with fixed rate it drop down to $7 in the first yr but subsequent 4 yrs there will be rent increases so cash flow increases
or wud it be better to take a 35 or 40 yr mortgage with the variable or fixed rate?
what would be the better option to take in the opinion of experienced RE investors?
Thanks
We are closing end of june on a freehold townhome for $240k with 25% down. We also have a 2 yr lease signed by prospective tenants for $1500/mnth
Monthly break up:
Taxes $225
Insurance $50
Mortgage on 30 yr amortization at 4.25% variable 5 yr rate $881; or mortgage fixed rate 5 yrs 5.25% $987
int only pymnts on secured LOC for downpymnt $235
Cash flow of $109 if go with variable rate right now rates will increase in next few yrs so this will decrease
with fixed rate it drop down to $7 in the first yr but subsequent 4 yrs there will be rent increases so cash flow increases
or wud it be better to take a 35 or 40 yr mortgage with the variable or fixed rate?
what would be the better option to take in the opinion of experienced RE investors?
Thanks