Monday, October 25, 2010

Jumbo mortgage rates under 5% may help two-flat purchase

We're getting plenty of updates from our lenders that jumbo mortgage rates are getting locked under 5%. This type of rate may allow you to buy more house and land (responsibly) than you think. If you're currently a condo shopper, favorable jumbo rates may help you into a house or multi-unit building for near the same money you'd pay monthly on a condo.

(Click the link for more posts on two flats, multi-units on the North Side)

This type of jumbo rate would look great on an owner operator multi-unit purchase. If you are buying a $600,000 plus multi-unit property in a desirable North Side location, you can catch around $2,000 in rent for three bedroom rental depending on it's condition and if you include parking. At this price point, you should be finding a really well conditioned building. That rent increases your purchasing power. Applied to your mortgage payment, the rent may bring you down to a monthly payment similar to a $450,000 condo with assessments around $250.00 a month.

We suggest some of our condo buying clients look into multi-units when we think it could be a good fit and better value for them.

Please contact our personal mortgage consultant Steve Dunnett at 1-312-462-7709 or your current bank to understand the possibilities.

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