What rates are people seeing?

Question

Hi all,

What rates are you guys and gals seeing currently? I'm in contract for a $185k single family in Philly. Planning to do a 20% down 30 year conventional loan for an investment property. I'm in hot pursuit of <6.5%

Seph Hancock · Answer

Rates are all over the board right now, and a lot depends on credit score, reserves, debt-to-income ratio, property condition, and lender overlays.

For a conventional investment property loan with 20% down, I’d focus less on what someone else is getting and more on your total loan cost (rate + points + lender fees).

I’ve seen investors get so focused on chasing the lowest rate that they end up paying thousands in fees to get there.

A few questions I’d ask:

• What’s your credit score?

• Is this a long-term rental or a BRRRR play?

• Are you comparing direct lenders, local banks, and mortgage brokers?

• How many points are being charged to achieve the quoted rate?

If you’re truly seeing sub-6.5% quotes on a conventional investment property today, I’d look closely at the fee sheet before making a decision.

Out of curiosity, what rates and costs have you been quoted so far?

Alan Asriants · Answer

Its possible based on the loan program - are you buying as primary or investment.. etc

Theresa Harris · Answer

Do you have mortgage brokers down there who can shop around for you?  I'm in Canada, so the rates I know about are useless to you (they are a lot less than 6.5%)