Rental Property Investor · Brooklyn, NY · Member since 2018 · 11 posts · 6 votes
Hey Guys & Girls. I'm new to BP and this financial Journey. I'm in the process of buying my first home to house Hack. it's a triplex completely empty. I noticed my interest rate was 5% (FHA 30yr). When I asked my lender he told me that it was due to the facts it's a multi unit building. Is this correct? I applied for a mortgage last year and my rate was 3.85. Keep in mind I have good credit between 680-710. just want yall opinions. thanks
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
8y
Yep, that's in the ball park. The Fed raised rates 6 times since Trump became president.
The economy is on fire and the bond market isn't getting much traffic due to the fact that the stocks are performing very well. So all that leads to rising mortgage interest rates. It's okay to shop for rates a little, but you shouldn't find huge discrepancy's from one lender to the next on the same loan program. I would just settle in with the lender that you working with, ask them the options to help reduce your rate and go forward.
Lender · Western Springs, IL · Member since 2015 · 472 posts · 245 votes
8y
@Davante Dennis Pricing can change greatly from mortgage company to mortgage company. FHA is one product that often, lenders are making a lot of money on.
Based on the information above, I am seeing rates more in line with 4.625%/4.75%. Not sure if the lender is covering any costs or anything for you. It is easy to comment when we are not seeing the full scope of everything though.