Mortgage Loan Interest Rate

11 Replies

I'm reviewing the terms of my 30-year fixed mortgage and the lender is charging me 6% interest. My credit score is good (800). 6% seems high to me. 

Has anyone else obtained a similar mortgage recently and can share their interest rates or other insight? 

Thanks!

You could almost say that rates are and have been in the process of being Trumped up... Tell me if you can spot the election.

(That's owner occ, sfr, 20% down, no HOA, perfect FICO, and loan amount below $450k at a cost of 0.5 to 1 pt. Going to guess you have some rate hits going on, but can't really speculate without the full scenario. And this is a survey of locks, not closings, so the folks promising the world but unable to deliver artificially drag that line down a bit.)

@Lesley Ray if you are talking about your personal home yes that seems a little high to me and I would shop around. I presume because you are asking here on BP you are talking about an investor loan. 6% is a perfectly reasonable investor loan rate. I doubt I can get 6% and would jump at that for a long term fixed rate loan.
@Lesley Ray I see like a million of these threads. Is it single family? Multifamily? Investment loan? A duplex or more will likely be around 5.75-5.875 percent currently. If you put more down you’ll get a better rate. 25 percent or so gives best rate. Talk to another lender. How many points are you paying?

If it's a primary, it's a bit high

if it's an investment, it's about right

what type of loan it Is and how many points you're paying also matter. Interest rate is just one of many metrics to consider loan viability

 details needed ...is this your home  or an investment prop?  single family  ?  just refinancing and paying off existing mortgage or taking cash out ?  what is  loan amt ? what is  prop value ?

Like many have said, there are a lot of factors that have to be taken into account to properly answer that question. If it's your primary residence and your debt-to-income ratio is good/great, then that's a high rate. If your credit is poor and you have too much debt, it's probably a decent rate. If it's an investment property, it seems to be in line with the market. 

Originally posted by @Lesley Ray :

Investment property, single family, loan value is $55,200, 30 year fixed

 Ah, so you've got the baby loan rate hit too.

$100k loan amount is where lenders stop seeing any significant profit, $50k is where lenders start to lose money by doing the mortgage at all. That rate bump might let the lender pick up at least another $250 or $300 (not a typo) on the secondary market so that at least they're in the green.

Dodd-Frank and CFPB compliance expenses are the same (I've seen estimates range from $3500 to $8300 [not a typo] for this) if it's a $75k loan or a $750k loan, but one of these two has a whole bunch of profit to make up for it.