Semi-annual payments on RE loan

Posted By: Here4Life

Semi-annual payments on RE loan - 06/13/13 09:53 PM

I have a customer who has requested semi-annual payments on his real estate loan. Can we do this?
Posted By: rlcarey

Re: Semi-annual payments on RE loan - 06/13/13 09:56 PM

Unless prohibited by State law, sure. How you disclose it all is another matter.
Posted By: Here4Life

Re: Semi-annual payments on RE loan - 06/13/13 09:58 PM

Thanks!
Posted By: Richard Insley

Re: Semi-annual payments on RE loan - 06/13/13 10:19 PM

Look carefully at the IRR that results from this change. By receiving the payments monthly, you have the opportunity to reinvest this money & earn more. Unless you can compound the semi-annual rate, your yield will suffer.