Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
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.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
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.
Lender · Western Springs, IL · Member since 2015 · 472 posts · 245 votes
8y
@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.
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.