Island Living Questions

[thinkxingu]

"For an easy math instance" implies fake numbers. We have no idea what the OP's friend is dealing with for numbers.

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[Pricestavern]

Why so literal? <in the voice of the Joker>

The post asked about loan strategies; one vs multiple. The numbers supplied were used as an illustration.

[Leoskeys]

Wow, too literal is right! I gave ballpark numbers for he purpose of the question . They would put AT LEAST 20% down. But with how low rates are, they will put as little down as allowed without having to deal with PMI.

[brk-lnt]

Originally Posted by Leoskeys

Wow, too literal is right! I gave ballpark numbers for he purpose of the question . They would put AT LEAST 20% down. But with how low rates are, they will put as little down as allowed without having to deal with PMI.

A mortgage is "secured" by the appraised value of the property. As a rule of thumb you can get a mortgage for up to 90% of the property value without a lot of hassle, and assuming you have good credit.

For your numbers, you're talking a $300K mortgage and another 33% ($100K) in extras, that is very unlikely to happen.

Also, while mortgage rates may be relatively low right now, the smart money is still with putting as much of a downpayment as possible without totally depleting savings/emergency funds. From your posts it kinda sounds like your friend may be stretching things a little thin. I'd buy the property with a solid downpayment and get a cheaper boat to start. There are plenty of perfectly good boats to be had in the $15K range.

[codeman671]

Originally Posted by brk-lnt

A mortgage is "secured" by the appraised value of the property. As a rule of thumb you can get a mortgage for up to 90% of the property value without a lot of hassle, and assuming you have good credit.

For your numbers, you're talking a $300K mortgage and another 33% ($100K) in extras, that is very unlikely to happen.

Also, while mortgage rates may be relatively low right now, the smart money is still with putting as much of a downpayment as possible without totally depleting savings/emergency funds. From your posts it kinda sounds like your friend may be stretching things a little thin. I'd buy the property with a solid downpayment and get a cheaper boat to start. There are plenty of perfectly good boats to be had in the $15K range.

Islands are a bit different. The banks usually require 20-25% down as these are considered seasonal, second homes. They are also held in house (portfolio loan) instead of brokered.