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Showing posts with label Mortgage. Show all posts
Showing posts with label Mortgage. Show all posts
Monday, March 8, 2021
On Bloomberg, foreigner vs local mortgages
Saturday, December 10, 2011
What's so special about the 30 year fixed rate mortgage
The 30 year fixed mortgage rate was at 3.99% in November, representing a historical low since record keeping began in 1971. In New York, the low rate has driven up sales transactions but in the US overall, housing is still slow because of concerns over unemployment.
Historical trend of 30 year mortgage since 1971
Historical trend of 30 year mortgage since 1971
Sunday, February 13, 2011
Mortgage rates rising
CNNMoney article - mortgage rates, driven by yield on the 10-year Treasury, is rising because of improving economy and because rates are so low they have nowhere to go but up. The national average 30-year mortgage rate reached 5.05% in Feb 11, breaking 5% for first time since May 2010. Some predict the rate to increase to 5.5% to 6% by end of 2011.
Thursday, January 6, 2011
Mortgage foreign investor New York property
Mortgage loan options for foreign buyers of Manhattan New York property.
Visit us at Castle Avenue Partners - Manhattan investment property
Thursday, January 7, 2010
Foreigner / International Buyer Mortgage Loan Financing for Manhattan New York Property
Foreign and international buyers of Manhattan New York property can obtain mortgage financing through two sources:
(i) US lenders
(ii) Overseas lenders at the foreigner's home country
US Lenders
The major US banks no longer provide financing to foreigners. However, certain niche banks still provide foreigner financing. The downpayment requirement is usually much higher and interest rates are higher as well relative to those provided to borrowers who are US residents.
Overseas Lenders
This is an option as the lender is from the foreign client's home country or region. Hence the foreign buyer will be more familiar with the documentation terms, mortgage structure etc. Essentially it's a bank at the foreigner's home country providing an international mortgage. Again, very few financial institutions provide this but there are niche players.
(i) US lenders
(ii) Overseas lenders at the foreigner's home country
US Lenders
The major US banks no longer provide financing to foreigners. However, certain niche banks still provide foreigner financing. The downpayment requirement is usually much higher and interest rates are higher as well relative to those provided to borrowers who are US residents.
Overseas Lenders
This is an option as the lender is from the foreign client's home country or region. Hence the foreign buyer will be more familiar with the documentation terms, mortgage structure etc. Essentially it's a bank at the foreigner's home country providing an international mortgage. Again, very few financial institutions provide this but there are niche players.
Wednesday, December 9, 2009
FAQ Foreign / International Buyers of Manhattan New York Property: Condos, Mortgage Financing, Expenses, Broker Fee
Can foreigners buy property in Manhattan, New York?Yes. Many foreigners buy property in Manhattan because of the brand value and appreciation potential. They often purchase as a pied-a-terre (vacation home), or investment property. A large percentage of our clients are international, from countries like Malaysia, Singapore, Hong Kong and China.
What type pf properties are popular amongst foreign or international buyers?
There are two categories of apartments, condos and co-ops. We recommend condos because of the higher appreciation and investment value. Co-op buildings often restrict ability to rent and perform renovations and do not make good investment property. The process of buying a co-op is subject to board approvals which dramatically prolong the buying process. The value of a condo, on a per-square-foot basis, is about 20 to 30 percent higher than a co-op. However, the appreciation potential and demand are higher as well.
Besides apartments, our international clientele also purchase townhouses, mixed use buildings and commercial buildings.
What are the expenses associated with owning a property in Manhattan?
For apartments, the main monthly expenses are taxes, common charges, insurance and depending on whether financing was used, mortgage principal and interest.
New development buildings often have a tax abatement which dramatically reduces the monthly tax amount. Without abatement, annual taxes are often between 0.5 to 1 percent of the property’s value. Common charges average $1 per square foot per month and it goes up or down depending on number of units and amenities. Insurance is roughly $500 to $1000 per year and on a monthly basis, a relatively smaller expense item.
Is financing available for foreign or international buyers?Yes, mortgage loan financing is available and can be obtained either through a mortgage broker or directly from the bank. Since the credit crisis, lenders have tightened credit criteria and will require about 40 percent as downpayment from a foreign buyer. Most mortgage products for foreigners are ARMs (adjustable rate mortgage) but some lenders offer 30 year fixed mortgage to foreigners. We will refer our foreign clients to reputable mortgage brokers or banks to help arrange financing.
What are closing costs?Closing costs are roughly 3 to 5 percent of the loan amount. This includes mortgage tax, transfer taxes if purchasing a new development, attorney fees, recording taxes and other administrative expenses.
Who pays the broker fee?
In New York, broker fees are paid by the seller. When the seller’s broker agrees to list the property for sale, a certain percentage is agreed upon as commission. If the buyer is represented by a broker, this commission will be split with the buyer’s broker. If the buyer does not have a broker, then the seller’s broker keeps the entire commission. Hence, it is in the best interest of the buyer to have broker representation to help identify the right property and negotiate the best price.
Visit Our Foreign Buyer's Guide
New York historical price appreciation
Buying New York property
New York Property articles
New York property search
FAQ
Contact Wei Min at tan@castle-avenue.com on how we can help you grow wealth through Manhattan property.
What type pf properties are popular amongst foreign or international buyers?
There are two categories of apartments, condos and co-ops. We recommend condos because of the higher appreciation and investment value. Co-op buildings often restrict ability to rent and perform renovations and do not make good investment property. The process of buying a co-op is subject to board approvals which dramatically prolong the buying process. The value of a condo, on a per-square-foot basis, is about 20 to 30 percent higher than a co-op. However, the appreciation potential and demand are higher as well.
Besides apartments, our international clientele also purchase townhouses, mixed use buildings and commercial buildings.
What are the expenses associated with owning a property in Manhattan?
For apartments, the main monthly expenses are taxes, common charges, insurance and depending on whether financing was used, mortgage principal and interest.
New development buildings often have a tax abatement which dramatically reduces the monthly tax amount. Without abatement, annual taxes are often between 0.5 to 1 percent of the property’s value. Common charges average $1 per square foot per month and it goes up or down depending on number of units and amenities. Insurance is roughly $500 to $1000 per year and on a monthly basis, a relatively smaller expense item.
Is financing available for foreign or international buyers?Yes, mortgage loan financing is available and can be obtained either through a mortgage broker or directly from the bank. Since the credit crisis, lenders have tightened credit criteria and will require about 40 percent as downpayment from a foreign buyer. Most mortgage products for foreigners are ARMs (adjustable rate mortgage) but some lenders offer 30 year fixed mortgage to foreigners. We will refer our foreign clients to reputable mortgage brokers or banks to help arrange financing.
What are closing costs?Closing costs are roughly 3 to 5 percent of the loan amount. This includes mortgage tax, transfer taxes if purchasing a new development, attorney fees, recording taxes and other administrative expenses.
Who pays the broker fee?
In New York, broker fees are paid by the seller. When the seller’s broker agrees to list the property for sale, a certain percentage is agreed upon as commission. If the buyer is represented by a broker, this commission will be split with the buyer’s broker. If the buyer does not have a broker, then the seller’s broker keeps the entire commission. Hence, it is in the best interest of the buyer to have broker representation to help identify the right property and negotiate the best price.
Visit Our Foreign Buyer's Guide
New York historical price appreciation
Buying New York property
New York Property articles
New York property search
FAQ
Contact Wei Min at tan@castle-avenue.com on how we can help you grow wealth through Manhattan property.
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