Ellenwood, GA · Member since 2016 · 267 posts · 70 votes
Hi all.
Is 5.25% on a 30 yr conventional loan with 15% down and excellent credit, about where the market is right now on less than a $250,000 property or should I be shopping lenders, considering I'm using a broker.
@Jose Pena, it really depends on your specific situation as a borrower.
These rates sound fantastatic for someone who qualifies for CONVENTIONAL financing. However, for myself, I am quoted rates in the 6% range because I need a lender that lends on the cash flow of the property or asset-based rather than factoring in my personal debt to income.
Can you give specific details about yourself as a borrower and the LTV for the loan you're looking to secure?
1. How much more $ out of pocket would another 5% be? (I.e. to go to 20%)
2. At 20% down, you'll have more cash flow. How long will it take for that "additional" cash flow to equal the that 5% extra you put down?
If the answer is many years, then the 3rd question would be, could you make better use of that money now if you kept it in your pocket and used it to grow. Food for thought.
@Wendy Smith - Wendy run from that broker. If your credit is good you should not pay over 3.125% on owner occupied. Also, I suggest you come up with 20% down and avoid PMI. I mean you already have 15%.
OK. So with 20% down my unlocked rate on LE says 3. 5% and I'm now adjusted to a primary residence .
No points, just their standard underwriting $1,395 fee.
I should add, I decided to coapply with a higher earning family member, based on my low W2 income, coupled with my rental income, since we both have excellent credit. Not sure if this makes a difference. We both have liquid assets which could cover the $40,000 deposit and reserves but on my own seems DTI was too high.
Property will make a great house hack if deals goes through, perhaps even more so than previous one.
With PITI under $1,000 and possible rental at $2,300 with me living there.
Man, time flies by so fast esp 2020, we're almost through June. Rewind to end of 2017 when I bought my first primary residence fixer upper which turned out to be a live-in flip. Now I've got the 2 years reported income on tax return so I know I'm gonna snowball my way to Financial Freedom.
Thanks to the BP family and I'll definitely be reaching out to some of you that have offered to connect.
Peace, Blessings, Good Health, Wealth and Humility to us all!
@CJ M. Yep nothing doing with funds so yes, I figured let's go for it without even the comparative analysis you suggested.
Was feeling antsy and almost pulled the trigger last week but upon further review decided not to. Like I've read on here so often, RE is not a sprint, slow and easy wins the race. It's not always easy to be patient especially with some always saying just jump in. Don't get analysis-paralysis.. But sometimes it's good to just bide your time.
@Cameron Tope what?! Where?! I’m looking into an investment property with 4.5 interest rate and I’m second guessing myself because she’s asking for 25% down. Cali by the way.
@Cameron Tope what?! Where?! I’m looking into an investment property with 4.5 interest rate and I’m second guessing myself because she’s asking for 25% down. Cali by the way.
Mine is based off a refiance of a duplex investment property loan. Are you refiancing or purchasing? Im not sure but i think refiancing has better rates.
Can anyone share where are they getting these phenomenal rates for rental properties? I have a 800+ credit score and do 30% down. But still the rates I am getting are pretty high. Nothing is the 3's. Will be super helpful if y'all can share me the contact of your mortgage broker or bank details that offer such phenomenal rates. Thanks!
@David Pai ohh got it. I’m looking to buy a second property it is a duplex for 235k. And my credit is 720. But I’m just thinking 4.5 is that a good interest rate no points. Cali by the way
@Gayathri Marathe I second that. I’m in Cali too and I’m no where near being offered anything close to 3. I’m at the lowest is 4.5 I believe with 25 % down and a 720 credit score.