16Nov/10Off
$1.2 million loan C/O refi
Property value of $1.6 million. My borrower has been told the Merrill Lynch has the following product, that I now have to compete with:
-6 mos. LIBOR, Margin: 2.000%
-interest only for 10 years, final 20 years fully amortized
-Current starting rate of 5.375% with NO POINTS AND NO PREPAY!
I can structure a similar loan, but can't come anywhere near on price and rate. Does anyone know if this is even remotely possible, or is someone at Merrill just trying to get him in the door?
November 30th, 2010 - 12:35
I had a client a while ago who had her portfolio with either merrill or some other big name outfit. her mortgage was included in her investments. while my loan package in the sort term was a winner hands down, the long term yield on her book i couldnt touch. had to settle for a 115% 2nd.high fees high rates and it still didn’t matter. you might contact a local office of merrill and run some scearios by a mgr or top rep.
December 17th, 2010 - 09:35
What I’ve discovered is that Merrill will curtail a product for their clientele, and furthermore, to increse the LTV, they will take existing stock that they have and carry it/or rather hold it as chattel (similar to a coop), for a period of time. However, there are some decent rate and prices out there……you just need to continue doing your homework! Unless you would prefer co brokering the transaction?