Thoughts on lender offer

4 Replies

5% for 30YR on a cash out refi with a 690 Credit score..

Is this typically this high for an investment property? My current rate is 5.25% @ 15 yrs...

Any ideas or suggestions is welcome

@Abhilash Joseph  Investment property loans are typically going to have a higher rate than an owner-occupied loan, particularly for multi unit investment property. It's not unusual to pay 0.75% to 1% more than a similar owner-occupied 30-year fixed. 

The Freddie Mac survey is showing that the average interest for a 30-year fixed owner-occupied loan right now is just shy of 4% with 0.6% of the loan amount in fees and points. You can get the rate down, but the trade off will be more fees. 

How much in closing costs is the bank charging? What's your loan amount? 

Hey Mark,

Thanks for the response...

I have 45K outstanding, so 75% of a 140K property, I was looking to pull 105K with a 55+ K in cash out for future investments.

All total fees were around 2600+ and some change...

@Abhilash Joseph It doesn't sound like you got a bad deal at all. Assuming this is a typical Fannie Mae loan, you're paying a bit of a premium in the rate for investment property, cash out, and 30-year fixed and your credit score. If you've talked with a few other lenders and haven't gotten anything radically better, you're probably getting a reasonably good deal.

Upvote for Mark.