The interest only loan
is for a 2-year term and was closed within two weeks of application.
In the first two TIC transactions arranged on behalf of Cabot Investment Properties, LLC, acquisition financing was secured for two different properties: A competitive $13,160,000 three-year interest only loan
, provided by Citigroup Global Markets Realty Corp., was arranged for Westar II, a newly constructed Class A office building located at 550 Polaris Parkway in Westerville, Ohio; and a $6,450,000 loan, provided by Greenwich Capital, was arranged for Cypress Creek Tower, a 62,476 square foot office property located at 800 West Cypress Creek Road in Ft.
Laurie Silver, Northeast sales manager, originated the $800,000 transaction, which involved a 10-year interest only loan
at a 9.3 percent interest rate.
Global Banking News-April 9, 2013--Danish central bank's rethink on interest only loans welcomed by mortgage bankers(C)2013 ENPublishing - http://www.enpublishing.co.uk
Denmark's central bank governor, Lars Rohdesaid's support for interest only loans has been welcomed by mortgage bankers after a proposal to phase them out was introduced recently.
All that normally remains are a few million dollars, an amount that many co-ops are now converting into interest only loans
or loans with very little principal payment to reduce the debt service payments.
The proliferation of what Fed chairman Alan Greenspan dubbed exotic mortgage products such as adjustable rate loans, piggyback loans, interest only loans, and home equity loans, whose monthly payments can as much as double if interest rates rise to not unfathomable levels, as well as mixed economic signals such as choppy job growth, and the way real estate appreciation has exceeded salary increases have provided fuel for many an apocalyptic scenario.
Interest only loans, which offer cheap payments for the first few years, convert to standard amortization mortgages after a set period of time, wherein the buyer has to take on both principal and interest payments.
For instance, we're seeing greater demand for interest only loans
and a wider range of adjustable rate products."