Apartment mortgage loan is a type of financing that provides competitive rates and terms for multifamily properties with five units or more. These loans typically follow guidelines from one of three entities: Fannie Mae, Freddie Mac, or CMBS. 후순위담보대출
These loans come in standardized types that lenders sell to Fannie Mae and Freddie Mac and customized types, called portfolio loans, that lenders keep on their books.
1. Interest Rate
Apartment mortgage loans are specialized types of multifamily loans to facilitate the purchase or refinancing of apartment properties. These loans are offered by both private money lenders and banks and typically come with a higher interest rate than single-family loan options.
The interest rate on an apartment mortgage loan can have a significant impact on the overall cost of the loan and should be a major consideration for anyone considering an investment in this type of property. Lenders will also factor in a borrower’s ability to service the debt on the property using a measure known as the net operating income (NOI) or the debt coverage ratio (DSCR).
Apartment complexes offer diversified rental income streams from multiple tenants which can reduce vacancy dependency and lead to higher returns on investment. This can be especially important when comparing returns to similar single-family home purchases which may only have one source of revenue.
2. Amortization
Apartment mortgage loans are a specialized type of multifamily loan designed to facilitate the acquisition or refinance of multifamily properties. These loans are typically backed by agencies like Fannie Mae and Freddie Mac and can be used to fund conventional apartments, affordable buildings or manufactured housing communities.
Amortization is the process of gradually repaying a loan through regular payments of principal and interest. The result is that the principal balance of the loan decreases and the amount owed in interest decreases as well. This calculator figures the monthly payment for an amortized loan based on the loan amount, the interest rate and the length of the term.
The calculator also provides a breakdown of each payment showing how much is comprised of interest and principal so that borrowers can see the impact of making extra payments toward the principal. This allows borrowers to estimate how much faster they can pay off their loans and save on interest charges.
4. Taxes
Property taxes are a recurring charge based on the assessed value of your home. They play a significant role in the affordability of your mortgage and fund local services like schools and public safety.
Apartment mortgage loans are a specialized type of multifamily loan that facilitates the purchase or refinance of an apartment complex. They are typically backed by Fannie Mae or Freddie Mac and are geared towards larger institutional investors, including Real Estate Investment Trusts (REITs).
These types of loans have higher down payment requirements than residential mortgages, and require annual net operating income to cover the cost of debt service at a ratio of 1.25x or greater, also known as Debt Service Coverage Ratio or DSCR.
They are also more riskier investments than single-family homes and require a longer investment horizon. Consequently, they are less liquid and may be harder to sell if market conditions deteriorate. They are also subject to more competition from regional banks that specialize in financing apartments.