I am getting ready to pull the trigger on my first rental property soon so I began the pre-approval process. Just got my numbers back from my lender and she quoted me with a 5.625% Interest Rate. This is way higher than I was expected and is making me second guess some of the properties that I ran the numbers for. Also, on 100k properties, closing costs would be close to 5k. I do have a 720 Credit Score as well.
Just curious to see some opinions on this if I should look into another bank or do these numbers seem pretty normal? Look forward to getting some insight from you guys. Thanks!
Your credit is good but isn’t all that great . Your debt to income ratio may be hurting you too but really I don’t think that rate is too bad . When I called some banks in my area for a cash out refi on a commercial loan last week that’s right about what I was offered . Commercial re loans are 5-6% now atleast in my area in northwestern pa.
investment rates for residential mortgages are 5.56% right now (depending on how you move around points). You may be able to get a lower rate in trade for cash. down to 4.75% or so. I personally wouldn't bother on that loan amount, payback period of the rate margin will be a few years and cash is more valuable right now.
get it while you still can. The era of super low interest rates are behind us.
This sounds about right to me
Makes me laugh when I here people complain about current mortgage rates. Guess they weren't around in the 80's LOL when11% was considered good :P
2 weeks ago your rate would have been higher.