Private Banking Loan Scenarios
We will examine the CIS form for the following:
* Borrower's industry
* Business income or cash flow
* Personal income
* Cash reserves
Please note that this program works with the borrowers that would otherwise be a "stated income" borrower for conventional lending, as we will use the cash flow of the business to service the debt.
Example 1, If a borrower has much more than the loan amount in cash reserve, we will consider offering a loan against that asset at 1.75 - 2.25% interest, only for any term. As a loan off the real estate; we will start with a LIBOR loan of 2.5% interest only for any term with the option to lock with an interest rate swap for some borrowers (See this link for an example of Interest Rate swap. ). With this program we can get to 100 LTV or more which is our primary strategy to help in off setting the value issues that have affect most areas of the US.
We can also combine loan products with any other products like a 5yr, 7 yr, 10 yr ARM, or a 30 yr fixed. We would blend the 2 or 3 products to the loan amount and get the average of the products combined. The products we would consider offering are the real estate loans, asset loan, and business line.
For borrowers that would rather have a product more familiar like an ARM, we can offer those products in the 3-3.25% interest only, and/or roll the product or modify at any point in the relationship. The rates are based on the borrowers relationship with us and is the reason why we just don't throw rates out there. The same borrower with the same income and loan amount can have a difference of up to .50% or more in rate based on variables like purchase or refi, or cash out, or location of property, or investment or primary, combined with relationship or not and so on.