A permanent rental is the rental property investors want to hold onto long-term. Permanent rental investors are more interested in the lifetime costs of the loan, rather than the immediate costs. At Visio Lending, our loan programs can be tailored to help permanent rental investors thrive. Here is a complete guide to help borrowers optimize their permanent rental strategy.
Rate Structures and Product Offerings
Our permanent rental investors are drawn to our 30-Year Fixed rate structure, which enables them to lock in a low rate for thirty years.
Visio’s standard origination fee is 1%, which many of our permanent rental borrowers opt for if they are happy with their rate. Permanent rental borrowers will also opt to pay higher fees to further lower their interest rates and save money over the life of the loan.
Prepayment Penalty Options
Visio’s standard prepayment penalty is a 5/4/3/2/1 structure, which means if the borrower pays off the loan in year one, they must pay a 5% fee, in year two a 4% fee, and so forth. Since permanent rental investors are looking to hold onto their properties long-term, they are not concerned about paying a fee within five years, so they typically keep the standard option.
Editor's Note: This post was originally published in May 2020 and has been updated in June 2020 for freshness and accuracy.