Can I do better than this mortgage rate?

Question

I'm lining up financing for my first REI. I talked to my usual bank (Chase) and they said 4.3% APR and 25% down. I'm thinking that shopping around I should be able to get a better rate. Thoughts?

Josephine Wilson · Answer

Great advice - thanks, guys!

I'm going to check out some local banks and credit unions, as you suggested. My credit and DTI are very good. I'd like to get to 20% down and 4%. Hopefully that's not overly optimistic!

Joe Canavan · Answer

@Josephine Wilson

I think what Layne said makes sense - scout out some local banks and see what they can offer. Smaller banks tend to have fewer clients so may be willing to offer more competitive rates/%down requirements to gain your business.

Worked for me on a multi where I was able to get both a lower rate and just 20% down for a non-primary investment property.

Good luck!

Erica Larence-Penna · Answer

@Josephine Wilson reach out to @Elise Marquette!

Layne T. · Answer

@Josephine Wilson - Always get 2-3 quotes for financing as a minimum. Also, look at banks beyond big names (Chase, B of A) - look at local neighborhood banks, get some referrals from your realtor, etc. The bigger banks aren't the best when it comes to investment property typically as well.

Josephine Wilson · Answer

@Russell Brazil Good point. I'll keep shopping.

Russell Brazil · Answer

Probably.....but of course its impossible to know since we dont know your credit, dti, what type of property it is, etc. A lot goes into pricing a rate.