Want Lower Monthly Payments? Choose Interest Only (IO)

A client wanted to buy a house for $1,250,000. He had $250,000 for the down payment and some money to show reserves. His middle credit (FICO) score was 765. As a result, his reserves had to be for only 3 months. (For some–a FICO of 740 requires reserves of 6 months.) Though he had good income, he needed to have low monthly payments since he would be paying off student loans for the next three years.

The solution was to take a loan fixed for 3 years Interest Only (IO). After 3 years, the loan will amortize for 37 years to keep his monthly payments lower than the conventional loan.

Since there was no out of pocket closing costs to get this loan and no prepayment penalty, he could refinance his loan after 3 years.

Whom Do You Know That Might Benefit From Our Tailored Mortgage Solutions?
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Spotlight

Date: Thursday: September 11, 2014  
Address: 2345 24th Ave., San Francisco, CA 94116 (Taraval Police Station)
Time: 6:30pm to 8:30pm 
Flyer: Click here

RSVP on  Meetup.com  OR  Facebook  OR email  Ausra@Pacbay.net

MeetUP Event: September Soft Story

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Meet up with Manny for a night of sharing common interests and ideas. You will have the opportunity to meet people with common real estate interests who own or want to buy commercial or apartment buildings, share, or address any ideas and concerns.

 

 

ready
What is the problem?
Who has the money?
What are Lenders looking for?
What are the solutions?
Can the city of San Francisco help?
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event
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RSVP on  Meetup.com  OR  Facebook 
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See you there!

Cheers,

Manny<br /><br />
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Life Lessons I’ve Learned From Our Garden

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“Always expect the unexpected.”

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For years, the area in San Francisco where we live, Monterey Heights, has been known to be covered in fog. Not anymore—due to global warming or some other changes in the weather, the fog burns off quickly and (at least on the weekends), we have days warm enough to have brunch outside on our deck. Our garden is filled with mature trees, bushes, flowers, and weeds. When we wake up in the morning, we hear birds chirping. When we sit outside, we often see hummingbirds suckling nectar from flowers, a couple of beautiful American robins picking up treasures they find on the ground. Squirrels come to play on the huge cypress trees. It is a very calming place, but we also have squatters. Certain flowers in our garden when not controlled, spread and overpower other growth.

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Recently on a Sunday, I decided to bring some order to the chaos. I thought I knew what it will take to do the job. But it turns out that I had no idea how much work it would take to do it right. But what was even more interesting, the following Sunday when I thought that I knew what to expect, I was surprised at how slowly I was progressing and how many Sundays it would actually take to get satisfying results.

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But the pleasant surprise actually came the next day—Monday. There was no way for me to know (since it never happened before) that when I came back from work after the dinner, the weather would be very pleasant and I sat outside, drinking tea, reading a fascinating book called “Black Swan” (not related to the movie) by Nassim Nicoles Taleb. Black Swan is a metaphor that describes an event that comes as a surprise. Mr. Taleb points out that before Black Swans were discovered, no one believed in their existence. The good examples of the “black swans” are 9/11, the economic meltdowns in September 2008, and the current war in the Middle East.

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While reading the book and working in the garden, I realized that the enjoying theses pleasant evenings (which could also be considered “black swans”), could be benefited only after we do the work and get rid of the “squatters”. Can we prevent or eliminate destructive “black swans”? I do not know, but at least we can start by creating awareness.

P.S.

I often photograph flowers in our garden—especially roses, which appear unexpectedly different every time. Please enjoy.

 

Do Not Keep Me As A Secret!
Smile And Please SHARE It With A Friend!

Cheers,

Manny
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