Current investment property rates.

3 Replies

I’m looking for some help here on what you’re getting for current rates. I just went into contract on a SFR and I’ve been using with the same broker for the past 12 years and we’ve closed 8 deals and I’ve referred 2 other loans that they closed in the past. I noticed on bankrate.com that the current 30 year fixed for a personal home is at 4.40%. Now in the past this broker I work with would always be .5% above the current rate for an investment property. Today he quoted me a 5.25% and I’m outraged. I’ve given them plenty of business and intend to give them more but I don’t appreciate the extra .25% they are tacking on. My question to the community is do other investors here usually get a rate like I have in the past, .5% above the going rate on a 30 year fixed, or do you get something different? Looking forward to your answers, thank you! Not sure if I should ditch my broker.

@Jason C.

This is the reason why I become my own broker and call the mortgage company myself. A broker is just a middle man. Middle men tack on their fees some way somehow. You have this wonderful thing called the internet that can give you lists of mortgage companies. All you have to do is put in an hour worth of phone calls to those companies, spend maximum of 5 minutes with agent and find out what programs they have and their current rate. Its basic free information.

The mortgage companies tend to have rates that are slightly higher or lower than the national average, not single digit differences that your broker is giving you.

I would ditch your broker pronto.

I just completed two refis.  I did a 10/2 Arm with a small community bank.  The first loan was 4.25 on a cashout refi for a 2 family home.  The second took a little longer due to no fault of the lender.  The rates jumped a bit and i refied at 4.5 on a 10/2 also on a cashout refi for 2 family home.  

Every bank is required to register with the state it does banking.  A creative google search can get you the list, then just go down the list and call the banks you never heard of before.