Choosing the right DSCR Loan: 30 Year Fixed Rate, 5, 7, 10 Year ARMs, Partial Interest Only

Описание: A Debt Service Coverage Ratio Loan or "DSCR" loan is a rental loan, mortgage, typically a fixed rate mortgage, 30 year, although there are options for adjustable rate over 5 year, 7 year and 10 year initial fixed rate periods. Adjustable rate mortgages are commonly called "ARMs". Within the adjustable rate category, you can take advantage of a really cool option which is called "Partial Interest Only" or "IO". It means that during those first 5 year, 7 year or 10 year fixed rate period, you only pay interest -- you don't pay down the principal balance of the loan, meaning the amortization schedule kicks in after that first term through year 30.

The reason why partial interest only is attractive, especially in markets where you have good equity in the property, you have good appreciation prospects over the next several years is that you may want higher cash flow and you don't want to have to pay down the principal on the loan. It gives you time after 5, 7 or 10 years, you can always refinance and go into a more conventional 30 year fixed rate option.

If you're buying a rental property or refinancing out of a hard money loan and need help choosing the DSCR Loan option that's right for you, give us a call at 443 492 9941.

Get your DSCR loan quote in under a minute: https://www.offermarket.us/loans

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