I applied for a conventional loan and got approved for 5.5% interest rate. It seems kinda high for having excellent credit. What do you all think?
Is that for primary or investment property?
There may be something about your specific situation that your lender is deeming a higher risk. But yes, that is high. Looking at what’s available on bankrate.com a 30 year conventional loan should be as low as about 3.5% (with minimal points) right now (3.625 without a buy down) and the rental property loan should be under 4% still.
I just got a 10/1 ARM for 4.375% on an investment property.
@Jim Goebel it's for a investment property.
Closing on a duplex August 6. Buying in my LLC.
20% down, 25 year amort, 4.7% interest, 10 year balloon.
@Tatiana Jimenez seems pretty standard I got the same exact rate on a conventional mortgage 5.5% / 25% down / investment property (highland residential mortgage)
@Anthony Wick which bank did you use?
@Michael Henry you can do better on conventional with other lenders. Probably 5ish or slightly under.
@AJ Nemeth your probably right at the time I didn’t rate shop and at this point it doesn’t financially make since to try to refinance.
@AJ Nemeth . Local bank that keeps loans in-house. They exist in just about every community. Loan was actually 4.6% and not the 4.7% I had said earlier. Bank lowered it on their own just before closing. I'm sure many won't like the 10 year balloon I received, but I'm just fine with that. I imagine I'll do a portfolio loan for many properties and refinance to pull out cash long before 10 years is up.
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