First property investment WHO TO go with for Financing? Does a .25 decrease really make a difference!

4 Replies

My hubby and i have decided to invest our savings into real estate! I will property manage! I researched and found a property.
We made an offer that was accepted! Fun so far! 145,000 to be financed 30 yrs conventional! My first time "shopping" rates and deals! It feels uncomfortable going back and forth between bank and mortgage group!

Basically mortgage group said 4.6 for 75/25 30 year
Bank countered with 4.25 for same.

When do you "trust" the process! Do YOU monitor the entire finance process after hearing the rate? I received the estimate for closing and the rate said 4.25/4.65 plus showed $250 Pts paid! I don't think i want to buy down points do I!
This seems like its not solid and could fluctuate! Plus the closing costs are estimated at $5000. While the other group estimated them at $3500. What am i missing?
Im ready to begin the property management stuff and a little frustrated with the back and forth with the finance part!

I never realized this part was so tricky! Advice and recommendations welcome?
Thank YOu

Correction- 145000 purchase price

If you do not plan on selling or refinancing in the first 5 years, it could be worth the points to buy down the rate.

How many points? (Not "$250 pts"). Normally it's 2 points per 0.25% reduction.  You need an apples to apples comparison: same rate from each, then compare points.  There will be a variable in guesstimates for things like insurance and property taxes, ignore those, focus on the actual lender fees, appraisal costs, origination fees, etc.

Thanks for the responses. 

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