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  1. #1
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    Default Current Real Estate Loan Rate???????/

    Curious to know what is an average real estate loan rate these days on raw land, apartments, and houses.

  2. #2
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    I got a 17% A.P.R. 1st. at Scotia Bank in Jan of this year..........Private money I was offered as much as 4% a month.
    Be warned the Sharks are on land as well...........

  3. #3
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    17% ...well that is better than in the past. Let me see...17% on 1 million pesos...14,166 a month in interest. 442 USD a month for interest on top of the principal. 2 million would be double that 884 USD per month. I assume you pay down the principal fast right. What am I missing? Please explain.

  4. #4
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    3 Questions need answers.
    1. Term of loan
    2. Is interest rate fixed?
    3. Is principle fixed in pesos (if value of peso declines, does principle remain stable)

  5. #5
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    Default The interest rates here are outrageous!

    As a mortgage broker, the best way to buy property here is for cash! Refinance your property in the US or if you have assets in the US use those. You odn't even have to be a US citizen!

    As I do a lot of business with Real estate agents and developers here, it is by refinaning their client's properties in the US. Here interest rates, depending on the bank, range from 16-36%! They only give 60-65% LTV, it's adjustable, not 30 year fixed, and worst of all it is in pesos!

    Let's say you buy a property for US $200,000. The peso is at $35/1. Six weeks later, it drops to $26/1, but you still have to convert to pesos. At that point that condo is now costing you roughly 30% more!

    Private lenders here I know of will do from 40-50% LTV, 2-3.5% interest a month, and rates change depending on the amount of money borrowed, and most are balloon loans.

    JRR

  6. #6
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    Hi JRR, refinancing in the US for Dominican Republic property comes up over and over again on the boards. Would you like to tell us a little more about it? I hope Robert will give us a little leeway. If not, he is sure to delete. But it is an interesting topic that people ask for regularly. What are the conditions and what are the rates?

  7. #7
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    Not sure how it works in the US but in Canada we were able to take out a Home Equity Line of Credit (using our house at home as collateral) at prime + 1/4% which currently is around 5.5%. In Canada you can refinance upto 75% of the value of your current home. The interest rate is floating but can be locked in at any time if we feel the rates are on the rise. We then used this money to pay for our vacation home in the DR

  8. #8
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    Default Basic info...no commercials!

    Just to briefly explain how it works.

    No commercials………….

    In the US, depending on your credit score, you can finance or refinance your home up to as much as 107% of it's APPRAISED value. I stress that point because let's say you purchased the home five years ago for $200,000 At that point you put down 10% and financed $180,000. If that home was in Florida, it probably appreciated an average of 12-26% each year, depending on what part of Florida. By the way, it does not have to be a primary residence to refinance. Let's use 10% conservatively.

    $200,000 * 1.10 * 1.10 * 1.10 * 1.10* 1.10 = $322,102.

    If initially you took out a 30 year fixed, of the $180,000 you would still owe approximately $176,000. If the house is appraised at the $322,102-$176,000, you have $146,102 in equity that you can use to buy a place down here. That can be a Home Equity Line of Credit (HELOC) based on prime + or Libor, or you can refinance the whole amount of the $322,102.

    Quick definition here:HELOC-most programs have you paying interest only on the outstanding balance. Let's say you took that $146,102 as a home equity line of credit. You purchase here and need to put down 20% on a $130,000 condo, or $26,000. You only pay interest on the $26,000/12 for your monthly payment. Three months later, you write a check for another $26,000, so now you pay interest on the $52,000....only the money you really owe yourself, the funds outstanding. If at the end of the year your company pays you a bonus of $ 20,000, and you pay yourself back, you will only pay interest on the $32,000 still outstanding, but, you can write a check now for (146,102-32,000) or $114,102.

    What are the advantages besides the obvious of paying 6-10% rather than the 16-36%!

    1. There are programs out there with rates that start as low as 1%! Right now for financing and buying properties here, that has been the most popular….not if financed here!

    2. You get higher loan to values on your properties and based on appraised values…not if financed here!

    3. Interest and real estate taxes are deductible on your taxes. If an investment property, you can also deduct the maintenance, and depreciate the property over 18 years….not if financed here!

    4. If you rent it out in US dollars here and open an account in US dollars……..

    5. Endless variety of programs to fit any borrowers needs ( both over the age of 62? Know what a reverse mortgage is?)….not if financed here!.

    6. The whole transaction is done in US dollars. You always will k now what that condo cost you!.....not if financed here!

    This is just a quick run down of some of the reasons and options. Of course each borrower is different, with different financial goals, everything from purchasing land in Samana for investment to shopping centers in Bavaro. A house in Sosua or Cabarette! This country is first growing and Real Estate right now is definitley hot with prices increasing on a monthly basis!

    If there is a particular scenario you would like to discuss, please email me. If you prefer, I am located here in the capital.

    Hope I stayed within the guidelines!

    JRR

  9. #9
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    Thanks JRR, for sticking specifically to what I asked for.

    Just for clarification, this was not an open invitation to spam the board, just asking a specific poster with history on the board, for some information about this. No advertising, no spamming, just simply information in terms of how this works.

    Anyone else in this business is welcome to ask Robert for advertising rates for their services. The DR1 is really very reasonable with their advertising rates. Go on, ask, you may be surprised.
    Last edited by Chris; 04-11-2006 at 04:49 PM.

  10. #10
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    Quote Originally Posted by Snuffy
    17% ...well that is better than in the past. Let me see...17% on 1 million pesos...14,166 a month in interest. 442 USD a month for interest on top of the principal. 2 million would be double that 884 USD per month. I assume you pay down the principal fast right. What am I missing? Please explain.
    I might ad that I'm only using this`as temporary bridge financing.......Pay back supper fast.

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