Blown Away - 7.5 % with 2.25 points

[Pavan K.]

Just got of a call with the Builder's lender financing team. This is for a new construction SFR (expected completion - Sep 2024) which will be used as Investment Property.

That's the rate they quoted (7.5% with 2.25 potins ) as of  today with 25% down , with 800 Credit score, Zero Debt.  Phew !!  I mean , Is there anything at tall  i could do to get better rates?  More downpayment  does not change the rate as well (I did ask .)

Sure ,Will be shopping for better rates ,when we get close to closing .Was hoping i would be in the 6.5% range with no Points. 

[Chris McKay]

It's hard to say without knowing the rest of your financials, but 7.5 with 2 points and change is pretty standard in today's market for an investment property. 

The only two things I see you could do would be either to owner-occupy or to shop around to other lenders who need your business. Are you locked in to using the builder's lender? 

That said, unless you have a track record or something to offer, 6.5 no points for an investment property is a very lofty goal in this market.