2007-02-08 06:56:47 · 4 answers · asked by jay s 4 in Business & Finance ➔ Renting & Real Estate
No. the reason is because pretty much all ARM loans come with a pre-payment penalty. Most ARMs are 2 year, 3 year, and 5 year fixed terms before they start to adjust, and the penalty is there the entire time it is fixed. You can pay to waive the penalty up front but it costs around 1.5 - 2% on the rate.
If you are wanting to do a flip, just take out an Interest Only loan, buyout any prepayment penalties before you close, and then fix up the property and sell.
2007-02-08 07:58:12 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Arm loans are dangerous. My brother in law is paying 160,000 for his 30, 000 schooling because he took out such a loan.
If you are sure that you can turn over the house before the cheap rate of 4% jumps to 27% than try it -if you like gambling.
2007-02-08 07:06:24 · answer #2 · answered by Sara 5 · 0⤊ 1⤋
well the best way i know of is what is called a simultaneous buy/sell in where you contract with a seller in where you include a investors diclosure notice and find an end buyer and do a simultaneous buy/sell.
2007-02-08 15:18:54 · answer #3 · answered by http://intnlfinderspecs.zip.io 2 · 0⤊ 0⤋
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2007-02-08 06:59:52 · answer #4 · answered by A. RMZ 4 · 0⤊ 2⤋