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I own two properties outright but they are in Mexico and spend most of my time there. But, I'm born America and lived in USA 75% of my life. My FICO score is average 770.
I want to make an investment in real estate near my mother's home in Los Angeles. I could pay cash for a small home somewhere but I want to use the deal to also get a mortgage on my credit history since I have none. I'd want to pay it off quickly.
My question is what kind of loan could I get that I could pay it off within 1-2 years without early payment penalties. Since I have a $60,000 salary in USA (rest is Mexican) my total loan amount would be limited by that number. I would think a 30 year loan would allow me a larger loan amount.
I realize this is an odd situation but any help would be appreciated.
@ckinninger wrote:I own two properties outright but they are in Mexico and spend most of my time there. But, I'm born America and lived in USA 75% of my life. My FICO score is average 770.
I want to make an investment in real estate near my mother's home in Los Angeles. I could pay cash for a small home somewhere but I want to use the deal to also get a mortgage on my credit history since I have none. I'd want to pay it off quickly.
My question is what kind of loan could I get that I could pay it off within 1-2 years without early payment penalties. Since I have a $60,000 salary in USA (rest is Mexican) my total loan amount would be limited by that number. I would think a 30 year loan would allow me a larger loan amount.
I realize this is an odd situation but any help would be appreciated.
For any real estate purchase, there are plenty of mortgage options that don't include prepayment penalties. I could be wrong about this, but I thought I read a while back that loans with prepayment penalties are disappearing, because some were predatory in nature (locking people into a loan with unfavorable terms).
Speak with a loan officer.
Pretty much any. Since the housing debacle removed most predatory lenders prepayment penalties are gone. That said, spending money on closing costs and interest on a mortgage just to improve your already good credit is quite a reach. Going up from a 770 isn't going to do a lot for you.
I would think that without prepayment penalties closing costs much be higher these days. Any idea what closing costs might be on a $400k home? Say 150 down.
@ckinninger wrote:I would think that without prepayment penalties closing costs much be higher these days. Any idea what closing costs might be on a $400k home? Say 150 down.
No prepayment is pretty much the norm. 3%-4% of the loan is average for closing costs, as larger loan may be a bit more.