Is my loan rate too high?

[Melissa Dwiggins]

My husband and I are currently under contract on our second buy and hold investment property. The purchase price is $68,000 and we are using a conventional loan with 20-25%. The rate we have been given is 5.8%. Lender claims it is because the loan amount is so low (51k approx.). Does this sound right to you guys? We have great credit and and the only debt we have is our other investment property. Any advice would be appreciated!

[Jerry Padilla]

@Melissa Dwiggins

Any loan amounts under $100k are going to have higher rates, especially when you get around $50k and lower. That rate doesn't sound too far off.