Is higher leverage on a transaction worth it?
When applying for a loan, some lenders will lend up to 60% of the LTV/LTC on a transaction while others may lend up to 70%. With a higher leverage point often comes a higher interest rate and usually a higher fee. In this video, we compare the difference in annual interest rates for a 60% and a 70% LTV/LTC loan and discuss how much clients may end up paying for that additional 10% of leverage.
For more information on funding a transaction in California, please call our office at 925-283-8919.
Rubicon Mortgage typically wants to see our borrowers be able to pay their loan so we ry to limit the loan to value and minimize higher leverage deals. See some of those deals here.