Property Types
Pertaining to residential mortgages and their risk based pricing methods, the Property Type is sub-categorized as follows:
- Single Family Residence (SFR)
- Multi-Family 2-4 Units (MF)
- Townhome/Condominium (TC)
SFRs are considered to have the highest dollar value per square foot and are thus the most favorably priced of the property types in the eyes of the lending institution. The property is stand alone, or 'detached' from other property.
Multi-family and townhome/condominiums are typically 'negatively priced', where the lender will assess a .5% to .75% increase in the actual interest rate or the price of an interest rate, due to their relative lower dollar per square foot values.
Read more about this topic: Risk-based Pricing
Famous quotes containing the words property and/or types:
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