I am financing a SFR in Denham Springs Louisiana which will be used as a rental property. My interest rate is 4.875. 20% down, 30 year fixed conventional loan.
Is this inline with standard rates in the area? Closing costs are about 6K; house is being purchased for 182K. Closing costs reasonable? Think I could have done better?
I can't speak for the rates and closing costs (they seem a little high but don't quote me) as I don't have too much experience in that area, but are you sure the home will cash flow? I plugged in the numbers on my personal residence and realized that it would not cash flow based on being in a flood zone and my interest rate is under 4%. Good luck and let me know what you discover.
Interest rates look good, but closing costs are high.
The highest we have paid on closing costs for a mortgaged property was 1800. Our attorney has a standard 1500 retainer for closing and usually pays us for any left over funds in escrow after closing.
Hi @Dustin Lee Cotliar. I am both a real estate investor and a licensed realtor in New Orleans. I have been in the REI world for about 10 years and licensed for 7 years. The interest rate seems high to me. Current rates for 30 year conventional area about 3.64%. Closing costs typically run anywhere from 3-5% of the purchase price, so 6k seems about right. The 3 biggest components of your closing costs are you insurances... title insurance which is usually around $1200, and then your homeowners and flood insurance. You pay for the first full year up front on each of these, plus another 3 months of each into escrow.