Hello Folks,

I thought I would share an interesting comparison between Residential Financing and Commercial Financing which just occurred to me while I was reading Ki Gray - Austin Real Estate Blog .... http://activerain.com/blogsview/475952/What-are-Mortgage-Rates.

Ki's Blog which was posted last night was giving everyone on Activerain an update on current mortgage rates which are roughly 5.88% on a 30 yr fixed mortgage.

Now let's look at this:

The current Residential Financing market is such that MOST lenders will not do 100% financing any more. I know there are a few stragglers out there that are financing these, but for the most part, most buyers are at either a 95% or 90% maximum LTV. In addition to that the interest rate is roughly 5.88% (provided their credit score is over 720).

This will blow many of you away.....

On the commercial side we are still writing 100% Financing deals on Development Loans
both Inside & Outside the United States.

The MINIMUM loan amount is $30 Million and the interest rate is LIBOR + 2% ...... that is 4.72%.  On top of this, all closing costs are included in the loan, and no payments are do on the loan until construction is complete!!

When I think about it, I am simply amazed that it is easier to get a loan for $30 Million Dollars at 100% financing with an interest rate of 4.72% AND the subject property can be outside the United States.

.

Sincerely,
Sean Allen
Skype: sean.allen5
http://www.internationalfinancingsolutions.com/

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