Interest Rate on a Conventional Mortgage

[Manan Patel]

Hi All - 

I am working with the lender to finalize the financing for a Duplex in WA state. After going through multiple options, the best deal available is 30 years fixed conventional 15% DP at 4.125% interest. I plan to live in one of the units for a year or so. Given this will be owner-occupied, the interest rate seems a bit high to me. When I asked my lender about the interest rate, he said the rates have gone up in the past couple of weeks and that a multi-family property falls under a different interest rate bracket compared to the SFH conventional.

Can you help me validate this understanding and advise if I am getting robber here with this proposal?

Thanks,

Manan

[Scott Trench]

Interesting question - hopefully a lender answers with a current interest rate in today's environment! 

Would it be helpful if BP built a forum, or had a part of our site where we had lenders post interest rates every week for a variety of property types for a fictional individual with a 750+ credit score, $150,000+ in household income, and for: 

- Owner Occupied 1-4 units

- SFRs with 15% down

- 2-4 units with 25% down

Might something like this be useful? Do any lenders know if this is allowable/possible?