Do interest rates go up with each mortgage you get?

4 Replies

Hi all, quick q: I'm planning on getting 5-7 smaller multi-fam properties or 1-2 large ones.  If I were to get 5-7 separate mortgages, would the interest rate banks charge on each property likely go up?

If so, would it make sense then to get the largest loan first?

Goal is to minimize borrowing costs here over the entire portfolio.  Portfolio lenders seem to want 5.5-8pct, which is higher than rate I qualify for.  

Rates go up with market forces. Rates have been rising steadily the last 7 months and will probably continue to do so. Your lender may have internal risk factors that may push up rates or require larger down payments when you hit a certain number of properties. Each lender has their own overlays/rules. 

Thanks Bob.! Huge help!! What is the best strategy to apply for multiple loans with minimizing impact on credit score. Would you apply for all loans in a tight cluster (as I’ve read this on the Forums).  

Originally posted by @Silvia Camponelli :

Thanks Bob.! Huge help!! What is the best strategy to apply for multiple loans with minimizing impact on credit score. Would you apply for all loans in a tight cluster (as I’ve read this on the Forums).  

 Within 30 days of the first pull will flag as shopping for loans and will only affect your credit score as if it were one inquiry