What loan rate should I be expecting?

Question

I have 2 duplexes that I purchased at the same time as my first investment properties. I'm in Wichita, KS. I applied for loans with fixed 30 year mortgages for investment properties. Bought in August 2013.

We have separate 30yr loans for each duplex:

Duplex #1: Purchase Price 87K 20% down, 5.25%

Duplex #2: Purchase Price 80K 20% down, 5.25%

I feel like these rates are somewhat high and I've been trying to shop rates but since they are multifamily, investment properties under 100K I'm having trouble getting rates from any simple processes. What rates have you all seen recently or would you expect to get if I refinanced these properties? I have 700+ credit.

Note- I am not asking for a loan from anyone here per forum rules. Just a guesstimate on refinance rates I would see.

Thanks for your help!

Joe Marshall · Answer

The deeds are in my name. I am hopeful to refinance now to save some money long term and get a bit more return now.

I'll check out the suggestions! Thanks :)

Jason Hirko · Answer

@Joe Marshall your rate seems about right for investment properties with that long of an amortization - I'd say you'd have trouble getting them much lower unless you do a 15 year am or a 5 year balloon or something.

Jerry Padilla · Answer

@Joe Marshall

I really don't like posting rates as they change daily, but yes your rates are high for today's market with the criteria you have above.

Shane H. · Answer

If the deeds/loans are in your name that seems awfully high.  Check Capital one 360, Wells, BofA or any of the larger national banks - they'll probably have the most competitive rates for a 30 yr mortgage.

(I'm guessing you have the mortgages/deeds in your name as you typcally will not get 30 yr financing going commercial.)  If you decide to go commercial, go with a local bank and the rates will probably be around 4.6 for 15 or max 20 yr amortization with a rate locked in for 5 years then adjustable after that.

Thomas S. · Answer

Contact a mortgage broker they will get your answer. Don't waste your time shopping the market yourself.

Jake Hartman · Answer

15 and 20 year commercial rates around 4.5 is what I'm seeing.

What loan rate should I be expecting?

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