What rates are you seeing for conventional loans right now?

8 Replies

I was wondering if anyone would mind sharing what rates you are getting right now when looking at conventional loans.  

I'm looking at a triplex for $260k.  I'm being quoted 4.75% with a 25% down payment, 30 year term, closing costs around 6%.  

I read somewhere today that said 4.25%

Half a point higher than Q3 last year across scenarios.

- If rates continue to go up and the "era of historically low rates" is indeed at an end, you will be glad you locked in what you did, when you did. 6.5% is a historically normal interest rate, so call it 7.5% for an investment property. 

- If rates turn the other direction, you can look at refinancing. 

- If rates flatline, then it's a wash. 

@Tiffany Bishop Echoing @Chris Mason sentiments. That doesn't sound like a bad rate. I also want to add that referring to costs in terms of a percentage often doesn't work. Many costs are fairly fixed and therefore do not fluctuate too much with purchase price - therefore the higher price, the lower your costs are as a percentage. Also many are state/location specific. Just a heads up. 

Here is the inverse of Chris' chart. This maps out the 30 Year mortgage backed security bond market. We are matching the worst point in four years. Meaning worst rates we have seen in four years.

Got quoted 4.25 for primary, 5.125% for investment 

@Bo Kim I guess I should have clarified that it was for an investment property.

Thanks everyone for your insights!

@Jeff Dulla Makes sense about the closing costs not being a certain percentage.

Originally posted by @Tiffany Bishop :

Bo Kim I guess I should have clarified that it was for an investment property.

4.75% seems pretty great! Did you have to buy points?

I would have needed to pay to get 4.75, but with 5.125 got a lender credit. Also their closing costs was around 4%.

Check out Shawn Huss at Chemical Bank. Hes a no-nonsense kind of guy and has a wealth of experience. I got 4-5 different lender quotes (actual applications) last November 2017 before I chose one I was comfortable with. Now I have 3 with Shawn.

I just got quoted 4.6 and 4.85 on 5 year fixed 20 year amortization with 0.5% origination. 4.75 is about right.

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