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.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing