Rate quote today : 5.125% for 30 year

Investor · Albuquerque, NM · Member since 2017 · 133 posts · 83 votes

What do you think of this rate? I'm wanted to jump on locking in a lender in case rates go up at the Fed meeting next week....

Property info: Duplex, $155k, 25% down

Rate quote: 30 yr fixed, 5.125% (no points), $1339 lender fee

Anyone seeing anything better?

4 Reply

77 views

Most Popular Reply

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

@Tandi H. Mortgage rates dont nessecarily move in step with the federal funds rate. There is a long term correlation but not a short term. About half the time mortgages react in the same manner, and about half the time they move in the opposite direction. The supply and demand in the mortgage market is a much more powerful short term influence on rates than what the Fed does.

[email protected]301-893-4635 Podcast Guest on Show #192

District Invest Group545 Reviews

Website View Page

8 Reply

See this reply in the discussion

56 Replies

Jump to latestLatest

Sort by

Wei Jie Yang
New York City · Member since 2018 · 161 posts · 75 votes
7y
How are you guys getting these low rates? I'm talking with two lenders and the best I could get is 5.35% (no points) for 25% and ~6% with 20%? My median credit score is also in the 750s range.
0 Reply
Greg GaudetPro Member
Investor · Pukalani, HI · Member since 2017 · 413 posts · 291 votes
7y
@Tandi H. I’ll take it if you back out. And that rate sounds great.
Podcast Guest on Show #385
0 Reply
Andrew Narsi
Lender · Turlock, CA · Member since 2015 · 46 posts · 33 votes
7y
5% with a cost of $500 is a GREAT rate in todays market for a NOO multi unit.
To clear up some of the LTV questions going around regarding SFR & multi-units, here is what Fannie Mae guidelines state:
Non owner occupied purchase 1 unit - MAX LTV is 85%
Non owner occupied purchase 2-4 unit - MAX LTV is 75%
Owner occupied purchase (2 units) - MAX LTV 85%
Owner occupied purchase (4 units) - MAX LTV 75%
Cash out refinance on 2-4 unit NOO property - MAX LTV 70%
Cash out refinance on NOO 1 unit property - MAX LTV 75%
Cash out refinance on OO 1 unit property - MAX LTV 80%
Cash out refinance on OO 2-4 unit property - MAX LTV 75%
In regards to the questions about the discrepancy in rates, their is a difference when you use an "online bank or lender" vs. a mortgage loan originator. Online lenders can offer aggressive pricing because they usually have lower overhead, and tend to offer their loan officers much less compensation per loan closed. I am a loan originator in CA and AZ myself, and from my experience I can tell you that a majority of my clients are realtor referrals and repeat clientele who come to me for their lending needs. They come to me vs. going with an online lender who offers a slightly better interest rate because customer service goes a long way and working with someone face to face gives them the comfort they need especially when it is their first time buying. I have heard some horror stories with clients using an online lender who thought they were closing on their house in a few days, only to find out the loan was denied and not able to fund putting the EMD funds and the whole escrow in jeopardy.
Don't get me wrong though. If you have an A+ paper application, an online lender may very well be your best bet, but if their are a few hiccups in your file, it's best to use a local EXPERIENCED lender who knows the game and knows how to strategize when the underwriter comes grilling you with questions. :)
Hope this helps!
3 Reply
Tandi H.
OP
Investor · Albuquerque, NM · Member since 2017 · 133 posts · 83 votes
7y
@Andrew Narsi - Thanks for that comprehensive explanation of LTVs! I agree that online lenders go easier if you have a simple application. Also, our first one took the most paperwork, after that it got easier and they require less and less information. I wouldn't recommend Aimloan if you need creative financing, just normal straight ahead loans.
@Greg Gaudet Thanks! : )
@Wei Jie Yang I would reach out to Kelly at aimloan.com. If you PM me I can give you her phone number.
0 Reply
Jon A.
Asheville, NC · Member since 2017 · 385 posts · 274 votes
7y
So , I ended up nowhere near the quote I stated earlier, so I think for the sake of this conversation I should clarify that I actually ended up at 6.375% and not even close to the LTV I was looking for. With any luck, closing will happen for me next week. I took a hit for it being an investment property and another hit for it being a cash out refi. My DTI is really hurting me and I am self employed. I will try and refinance again soon, but I have been on an ARM for several years and am just happy to be getting to a fixed rate. The property still cash flows and I have plenty of equity, so we may try and refinance again in the near future.
0 Reply
Tandi H.
OP
Investor · Albuquerque, NM · Member since 2017 · 133 posts · 83 votes
7y
@Jon A. It sounds like a win - you are still cash flowing, have plenty of equity, and are getting cash out! Much better than being in an ARM. I'm also self employed so I understand your situation. My husband works and our loans count on his W2 income. Without that I doubt we'd get the low rates. Best of luck!
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.