Palo Alto, CA · Member since 2014 · 104 posts · 14 votes
for owner occupied conforming loans it seems the rate difference between 5/1 and 30 yr fixed is ~.75% -1% ( I am talking about no-point no fee)
I was thinking the same differential will apply for non-owner occupied. I am looking at a townhome as investment property.
My broker says for no-point, no-fee the and non-owner occupied the price difference is only .25%. Reason: fannie mae charges much more points for 5/1 non-owner so the rate difference doesn't remain the same.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
11y
In the lowest interest rate environment in 50+ years, I would lock in a fixed rate. Even if flipping, not having the uncertainty if things don't work out is for me. I do 15-yr fixed. Sacrifice a little cash-flow for the bigger prize later. The rate difference between a 15 and a 30 is 33%+. Arbitrage. Take advantage @Roy Mitle!