What interest rate/origination fees are you seeing

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What interest rate/origination fees are you seeing

Lloyd Preece
Rental Property Investor · NJ · Member since 2020 · 56 posts · 53 votes

Hey guys, what interest rates/ loan origination fees are you guys seeing right now?

Through my mortgage broker I just got a quote for 3.875% for a 30 year investment loan on a SFH.

Origination Charge is $1740 with another $1500 or so for 1.5 points

Property price is $133K, 80LTV, Loan is $106K,

Origination charge feels high but interest rate is fairly low so thinking thats what im paying for. Does this look like an overall good rate and fee combination? Just want to make sure I’m not getting ripped off!

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y

@Lloyd Preece I  pay $1200 origination fee with my lender, regardless of price of the property, so yours doesnt seem unusual to me. A little higher than I pay, but in the same general price point more or less. 

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    Investment or owner occupied? Id say high for owner occupied, on par for investment. 

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  • Lloyd Preece
    OP
    Rental Property Investor · NJ · Member since 2020 · 56 posts · 53 votes
    4y

    @Russell Brazil investment. Thanks for the input, I thought origination fees were supposed to be 0.5-1% of the loan amount so feels high

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    @Lloyd Preece I  pay $1200 origination fee with my lender, regardless of price of the property, so yours doesnt seem unusual to me. A little higher than I pay, but in the same general price point more or less. 

    [email protected]301-893-4635Podcast Guest on Show #192
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  • Luis Silva
    Residential Real Estate Broker · Sacramento, CA · Member since 2014 · 54 posts · 23 votes
    4y

    Yes that is not bad considering the loan size and that it is a rental home (at least from what I am seeing out there). Pricing adjustments occur for things like loan-to-value, occupancy, and even loan size (ie. pricing improves on bigger loans because the margin is higher). Plus, rates have gone up the last few business days so I would say that is fairly competitive. 

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  • Lloyd Preece
    OP
    Rental Property Investor · NJ · Member since 2020 · 56 posts · 53 votes
    4y

    @Luis Silva appreciate the input Luis!

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  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    That seems on the higher side but not too different, you can buy down the rate if you plan on keeping it for a long time. 

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