I am looking forward to buy 4plex and 8plex in South Bay Area CA. I am a bit confused about the type of mortgage to take (5/1, 7/1 ARM, 30 year fixed). On 7/1 ARM, I am getting around 2.5% on 4plex and 2% on 8plex. Wanted to check if they seem good. Mortgage rates are falling again, dropped by 10 points over last 1-2 weeks. Wanted to learn about other experiences on what are best avenues to get good rates and some of the recent rates they got recently.
Updated 19 days ago
3% on 8plex.
I financed my rentals through fixed rate, never got a good ARM retes for them. For 8-plex, would like to know that type of financing it is as its 5+. Are you getting a commercial loan for 2%? that sounds awesome and would like to know the lender and details as I am looking for a commercial now.
@Raju Balakrishnan There was a typo in my post. I meant 3% on 8plex. The 7/1 and 5/1 ARM rates are certainly lower than 30 years fixed. I have worked with BofA and First Republic but I am open to have a new banking relationship if can get a great rate.
Thank you @Chinki Kumari so this is not a commercial load for 8-plex (5+ is considered commercial) since it is BofA. So I assume a confounding loan?
@Raju Balakrishnan No this is commercial, first Republic
oh ok, looks good to me. Depends on other factors like points etc. But looks pretty good especially its not confounding.
3% on 8-plex is awesome deal for commercial loan if they don't charge you crazy points.
@Wenda Wang I hear that ppl do get 2 or 2.5% on commercial multifamily loans with relationship banking and / or portfolio loans.
Have to show my ignorance- what’s a confounding loan ?