How to Calculate Multifamily Mortgage to Find the Best Deal
Abstract
Table of Contents What Is a Multifamily Home? What Is a Multifamily Mortgage? Types of Multifamily Mortgages How to Calculate a Multifamily Mortgage How to Know if a Multifamily Mortgage Is a Good Deal Despite being in the middle of a pandemic, multifamily real estate boomed in 2021. Types of Multifamily Mortgages When finding the best financing option for your multifamily investment, you may consider one of the four types of multifamily loans. Your options include conventional multifamily loans, government-back multifamily financing, portfolio multifamily mortgage, and short-term multifamily loans. Conventional Multifamily Loan A conventional multifamily loan is best for real estate investors who prefer a traditional financing method for a multifamily property. Government-backed multifamily financing follows the guidelines from Fannie Mae, the Federal Home Loan Mortgage Company, or FHA. FHA multifamily loans usually offer up to 87% loan-to-value on loans with a minimum of $2 million. Short-Term Multifamily Mortgages Short-term multifamily loans such as hard money loans and bridge loans are best for fix-and-flip investors or those who need to rehabilitate a property. To calculate a multifamily mortgage, you need to determine the following information: Loan amount Interest rate Loan term Number of amortization payments per year Loan amount Interest rate Loan term Number of amortization payments per year It's best to use a multifamily mortgage calculator to get an accurate computation.
