Posts Tagged ‘mortage’

Picking a mortgage broker

Tuesday, January 22nd, 2008

I would never select one through any manner other than a referral. It’s too big a task to be carried out by someone you’ve found in the yellow pages, a google or yahoo search, or by responding to mass mailer. Whether it be residential or commercial. Ask a friend.

Be careful about conduit loans

Tuesday, January 22nd, 2008

If your mortgage broker extols the virtues of a “conduit loan,” i.e., lower rates, longer amortization, and so forth, be wary. I’m not telling you to avoid conduit loans, but if you’re accustomed to dealing with banks, say farewell to a customer service-oriented experience. Also beware of

-Lengthy prepayment lockouts

-Arduous reporting requirements

-Prepayment penalties (called defeasance) that make prepayment unfeasible

If you want to sell your building in the next year or two, I would discourage you from using this sort of debt.