Interest-Only
Sereyna • Updated September 25, 2018
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For borrowers who don’t have a strong relationship with a traditional bank, a small network of lenders like private-equity funds and hedge funds are willing to issue debt on megamansions, albeit for a higher interest rate. One instance of a private-equity firm lending on a private mansion is Fortress Investment Group’s loan on Michael Jackson’s Neverland Ranch in the mid-2000s. Mr. Maddux said interest rates on such loans today can be 6% or more if a borrower is considered risky.
Robert Cohan of Carlyle Financial, a mortgage bank based in San Francisco, said private funds evaluate these opportunities on a case-by-case basis, and will often be willing to work with unique situation borrowers like athletes, entrepreneurs and the self-employed.
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Whether you’re buying your first house or getting ready to refinance, choosing the right loan product is a vital part of the process. Understanding interest rates and loan programs allows you to mak
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