What interest rates are you getting from traditional banks?

47 Replies

General question.  Those of you that are using traditional banks for loans what types interest rates are you seeing?

Sorry I will also add to the question above.  With good credit and able to put at least 20% down.

@Josh V. Try bankrate.com to give you an idea, or call some banks. You'll have your answer in 15 minutes.

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3.25% here. curious about others too. 30y fxd. 20% dwn. primary residence.

Can I negociate that lower?

@Josh V. I assume that you talking about investment properties, if so my latest rates were 4.75 & 4.875% on 30 year fixed. Most websites will give you owner occupant rates, which will always be lower than investor loans.

4.5 to 4.75% on SFHs & Small multi's, 7yr money, 25 yr amortization.

Freddie Mac publishes a weekly survey of rates from around the country. You can find them at the link below. A typical investment loan will be 0.75% to 1.5% higher than the published average rate for an owner occupant. On the lower end of that spectrum for a good borrower and higher for a not so good borrower.


Just closed on a SFR income property loan at 4.125% on a 30 year fixed with 20% down and no points.

@Josh V. Small market, Billings, MT...we're seeing commercial rates between 3.8-5.5% but it's extremely variable based on buyer strength and type of property. Sub 4% is rare.

Standard rate is 4.5-4.75% with a 20 year amo and 5 yr fixed. Origination fee of .5% is normal as well. Things in our market are slowing so we're seeing more banks offer
lower rates as competition increases.

@Nicholas W. Thanks. 

We see that as well. We see good borrowers denied from financing because their income is not as high for the number of properties they own. We are a big proponent of looking at rental income for the property and borrower experience rather than personal income of the borrower. 

Here in Mississippi, I've been quoted 4.5% with 20% down on a 30 yr from my local credit union for investments. I'm doing a HELOC now with them, 90% of our home value minus what we owe at 2.5% for 6 months then 3.5%.
Owner occupied is 2.5% on a 30yr

All loans investor in LLC: 2.5%-3.1% on our residential 1-4 unit 3/1 hybrid arm IO 10 years due in 30. 70 ltv. 3.1%-3.4% on commercial 5+ Units 3/1 Hybrid arm IO 3 years due in 30. 61-62 ltv. Non recourse. Loans all float to 1 month 6 month libor or cofi. But since 6 and 12 month libor got jacked we are moving off of those where possible.

Originally posted by @Luke Mike :

3.25% here. curious about others too. 30y fxd. 20% dwn. primary residence.

Can I negociate that lower?

Unless you are buying high-end properties in Madison County, you won't get those rates here for the simple reason you aren't borrowing enough because properties don't cost that much. What is typical is more like 4%.

@George Despotopoulos it's a mix of borrower income and investment property cash flow but the banks are primarily interested in subject property cash flow and will move forward with most prospective buyers as they as they have a reasonably strong personal balance sheet. 

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@Matt Hoyt   Matt those are some smoking terms  CA right ?  also highly experienced. 

I suspect many would have a hard time matching what your getting.. congrats !!!

@Jay Hinrichs Yes CA, and yes lots of experience. I've worked really hard (over many years) to get bank relationships that have allowed me to get the loans under those terms. With the caps rates around here we need us some low rates! And to be fair we're putting down a fair amount to get those rates/terms. However, I do feel like there are better rates/terms out there than people are getting. It takes a lot of work as you know. I've always hustled to get good loans. It's lots of work and for some of those years there it was damn near impossible. The other thing I see people getting on BP that I personally don't like is that 5 year balloon. I don't mind floating, I even float out of the gate sometimes, but man I don't like balloons. Especially at 5 years, that can put you in a situation you can't get out of. I can always figure out how to make a higher payment...

@Matt Hoyt   agreed on the 5 year it comes much quicker than you can imagine

I'm in a balloon situation. What's your best advice considering that? I plan on refinancing after a couple years. Am I out to lunch in your opinion? What should I be mindful of now?

I just got 3.75 on an investment property w/ 25% down.

Had to buy down the rate for $975 but that is all good since the lender credited me $1000.

I'll be PITI at 550/month and the property should rent for 12-1300 after repairs.

Where are you able to get 30 year fixed on a rental? What are the closing cost running? I can't find anyone local to do that.

I am getting 5% fixed for 10 years with up to a 25 year am with a local bank.

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