Real Estate Finance Advice Needed

[FarmboyBill]

If a place is selling for, say $40.000, and the note is for 15yrs, and the payments are $350 something a month. What would the interest be?

[painterswife]

Ballpark 6.5%

[po boy]

Originally Posted by painterswife

Ballpark 6.5%

Close.. 6.6

[FarmboyBill]

I forgot to mention that thats 100% that the banks making the mortgage on.

It seems to me that making $350.00 a month for a year equaling $4.200 a year. That for 15yrs equaling $63.000 for a $40.000 property is pretty steep? Am I wrong??

[po boy]

You are correct.

However, it's not steep.

If you are saying 100% financing, it ain't gonna happen. "See i got the place".

[Shygal]

Thats not steep at all, but rates are lower than that now I believe

[po boy]

Originally Posted by Shygal

Thats not steep at all, but rates are lower than that now I believe

Rates on CD's are almost zero!
Home mortgage rates are in the 3.5% range on 15 years with a down payment.
Rates on autos are about the same.
What are the rates on raw land with 0% down? They are not 5%, 7%, 12% or 98% as they are not out there!

[Brighton]

FBB, there are a million mortgage calulator websites, google one...here is what I got with the info you gave, nothing down, 6.5 intrerest on $40,000



Mortgage Repayment Summary

$390.11
Monthly Payment

$70,219.73
Total of 180 Payments

$21,853.06
Total Interest Paid
Oct, 2028
Pay-off Date
$7,500.00
Total Tax Paid
$866.67
Total PMI Paid
Monthly PMI
52 Monthly PMI Payments
of $16.67 Each
Mar, 2018
PMI Pay-off Date

[Brighton]

The only person that can tell you the interest rate you are going to pay by the way is the BANK!!

[sidepasser]

FBB - is the bank financing the land or the owner?

[FarmboyBill]

Bank, and I asked to the banker. Its not my bank.

[FarmboyBill]

Its a 10 acre. It has a small 24 X 42 barn, and a shed 6 X 24. It has a creek cutting it E and W. Road frontage runs same way. no house. It has a pathway across the creek a tractor with a nervous driver could drive over, made of broken up street and sidewalk concrete. A disc or harrow couldn't get across. It has a big pond on the other side. No well.
It has a rodio? arena on the E side and all of Nowata E of that.
Now for the bad part.
Although the barn is chock full of old hay and horse rap, the whole place is INSIDE the city limits. The town is at least 4 blocks away, as to houses ect. I called somebody at the city hall. He said no farm animals allowed. I guess whoever had horses there, nobody complained. Id buy it cept for that. I even signed a contract with the realitor, a doz pages of it, and either it or she didn't say anything about zoning. Later that day I called to ask about it, and she found out it was in the city. I called the city myself to find out and found out the same. That put me out on the deal so I called her and cancilled the deal. The place makes up around 10p/15 city lots or more.

[sidepasser]

Never buy in the city limits, someone WILL complain sooner or later. It is hard enough in a county to have animals without someone complaining!

[Yvonne's hubby]

Sounds to me like you missed a great opportunity... buy it, have a surveyor divide into acre lots.... resell them at 10K each... you walk away with about 50 clear in your pocket after paying off the note with interest, survey costs and advertising and taxes for a year or so.

[Yvonne's hubby]

Originally Posted by Shygal

Thats not steep at all, but rates are lower than that now I believe

Maybe, but our banks are still tagging me for 6.5 to 7 on commercial loans. This isnt like a home mortgage where rates are way down these days.

[Lazy J]

Please say we are not going down this road again..........

[FarmboyBill]

As to your first post, U DONT THINK THE OWNERS DONE THOUGHT OF THAT. SHE LIVES IN Nowata. The mineral rights go with it. These lots were done in the oil boom days when the town pop was in the 10/15000. Now, its more like maybe 10,000.

In Slick the lots are cut up 25 X 125ft retangulars.

[Shygal]

Bill if you aren't going to buy it, why are you even asking?

[Wolf mom]

Ya' know Bill, I love ya' dearly, but after all these many real estate questions over who knows how long, here and on the Singletree forum, I'd think by now you'd know enough to write down the things you need to know to ask your realtor or property owner before you sign a contract.

[FarmboyBill]

WM Iffn you can find a single instance where someone asked me about the zoning, id like to see it.