Real Estate Investor · New York, NY · Member since 2014 · 81 posts · 46 votes
Hi BP Family,
So we're looking to buy our first out of state investment property in Indianapolis for 150k! Question is, going through a mortgage, they're claiming it is 3.5% with 2 points ($2,400) or 5%. Just asked another and it's the same. Is this really the best??
I closed on a property in Evansville IN couple weeks ago 3.5% and 25% down for a duplex. I have another under contract in Indianapolis and they just locked me in with the same rate. How much down payment are you putting down?
I closed on a property in Evansville IN couple weeks ago 3.5% and 25% down for a duplex. I have another under contract in Indianapolis and they just locked me in with the same rate. How much down payment are you putting down?
Anytime! My lender mentioned if it's a SFH you could do as low as 15% for down payment. I use local bank in Indiana. I'll be more than happy to share the info with you.
I had a friend that invest in Fort Wayne then I discover Evansville from here BP. Looked it up online for the data, job etc and felt pretty good about it.
I actually went there for closing to get to know the city. I’m glad I did it. It gives me better understanding of the neighborhood.
I'm a local in Fort Wayne and I just bought my first investment property back in September. My interest rate was 4.125 through a local credit union. I put 20% down.
@Vinnia Tjhin that's awesome. I live here and I have noticed and connected with a few out of state investors. If I can help you answer any questions about the city or be of any assistance drop me a message. I'd love to connect.
@Sunny Suh I'm closing on a refi loan at 3.25% on SFH and 3.75% for a triplex (but this is a refi and also I initiated the loan process 2 months ago). 25% LTV on the SFH and 30% on triplex. Depends on your credit score and how much you are putting down, but you shouldn't have to put down points for a 3.5%? This bank i use doesn't have the best rates but their closing costs are really low (I estimate about $4500 max between all three loans, which entire cost will be covered by refi), so that's also a trade off between lower rates and higher closing costs (sometimes).
@Vinnia Tjhin looks like you're doing well :) already on your second property? awesome! good luck!
@Sunny Suh i got 3% APR no points 30 year loan with Bank of Omaha. I would definitely recommend them and i have found them with best rates so far. Fyi i have been investing in PA area.
@Vinnia Tjhin I've been scrambling to get things together on the apartment complex i purchased in July. I've been sort of procrastinating finding new deals because I wanted to get the apartment to cashflow first (it's not doing so well right now :( ), but i made a lowball offer on a two property deal on Monday and the seller accepted lol Oh well, it was really a low ball in my opinion so hopefully it'll be good! I wonder if my bank would lend in your area too. I can send you my contact if you are interested. Let me know how your PM works out in your area!
I just did 2 SFR's with US Bank @ 3.5%. Fee's were very reasonable, but their process was the worse loan experience, by far, I have ever had. They had to ask for four extensions, each time assuring us the time they were asking for was all the time they need. This was despite a 10 years relationship, 30% down and more than either loan (alone) in their bank. It only happened because my wife kept calling up the food chain until a Regional VP called the folks we were working with and made it happen, but they missed their last deadline even so...
So, good rate but a big negative on all else for US Bank. We are now shopping for a new bank in Las Vegas...
@Sunny Suh super exciting for you guys! Welcome to Indiana investing! I would say if you found a local credit union (one that we use is essentially between Evansville and Indianapolis so depending where the deal is they may or may not cover that area. We just closed out a refi with them at a 3.5% no points so the benefit to finding a local credit union or even a local bank with maybe 1-5 branches would be saving the cost of the points potentially. But when it comes down to it depends on how long that rate is locked in for (if it’s a 20-30 year AM and 5 year adjustments that would be different than a 20-30 yr fixed rate).
I’m currently in the process of refinancing two investment properties, my own personal residence, and purchase of a new property with Citi Bank. I would say it’s been quite a ride. Been working with them since late May. Apparently the struggle seems across the board. They lock the rates until they close on these loans so it kept me patient. Not sure if I recommend Citi. I’m sticking with them because I get a discount on rates since my spouse works there.
I just closed on a property here in Texas for a single family new construction with a commercial loan at 20% down, 3.65% for 30 years with one point. I decided to go with the builders lender because they're paying 4K towards closing cost s and the title insurance.
@Nadir M. i HIGHLY recommend you shop around. I can GUARENTEE YOU that you can get way better rates at lower closing cost at a smaller local banks than big banks like Citi banks even with a discounted rate. We have a friend at Citi that gave us the discounted rates before and it was WAY higher than what I got from other banks. NEVER use big banks for mortgages.
@Kristyn Grimes commercial loan with 30 year fixed at 3.6%??? are you serious that's an amazing term. are they only local or do they have presence in other states?
So we're looking to buy our first out of state investment property in Indianapolis for 150k! Question is, going through a mortgage, they're claiming it is 3.5% with 2 points ($2,400) or 5%. Just asked another and it's the same. Is this really the best??
Buying OOS can definitely drive up rate and cost. I would say 3.5% with 2 points seems to be okay, though I would call 10 lenders in the area and shop the rate and cost.
I purchased a duplex househack July 2019 in Austin Tx with a FHA 3.5% down with a 730 credit score and got a rate of 4%. I am closing on a refi for that same property in a few days for a new rate of 2.75% which will reduce my mortgage $177 a month.