Rental Property Investor · New Jersey & Virginia · Member since 2020 · 29 posts · 11 votes
BP Family,
I've been trying to get a quote on a refi for my personal property with a mortgage broker, but it seems the interest is high. What interest rate should I expect for an 800 score?
Rental Property Investor · CO · Member since 2017 · 11 posts · 17 votes
5y
@Orlando Ortiz I just locked a 3.3 30 year conventional on my 9th rental. I’m trying to refi 7 of them which average around 4.65%. I’ll probably have to go commercial so if anyone knows a national lender, please let me know. Getting a 3.3 rate on these 7 will save me $600/month.
I am refinancing two investment properties and buying one new. I am locked in at 2.99% for 30 years on one and 2.75% for 15 years on the other. The third is a cash out refinance for 2.875 for 15 years. I locked in 3 weeks ago. Owner occupied would have been at .5% lower. These are conventional loans, so nothing special from a local bank.
Ask three or four lenders what they can offer. Make sure they give you a sample settlement statement so you can see all fees. Sometimes they offer lower rate but you pay points or extra closing fees. Or the higher interest rate may involve waiving some upfront fees.
Hi Joe, Those are great rates for investments! The only reason I'm been patient with this broker is that I don't want my credit pulled multiple times to hurt my fico score.
When I ask what they can offer, I would simply just give them my information and they could give me a quote without pulling credit?
If the inquiries happen in a short period of time, they only count as one inquiry. This is true for auto or home loans. Shop several at the same time and you are fine. Most can give rate quotes without pulling your credit.
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
5y
@Orlando Ortiz Typically, lenders look at a variety of factors when evaluating an applicant for a loan and yes credit score is one of the many factors.
My favorite one and easy to remember is the 4Cs that lenders look at:
Capacity to pay back the loan
Capital (equity in this case of REFi)
Collateral (lenders are going to be looking at other asset(s) you own)
Credit
At the end of the day, if all is in relatively good shape, you should be getting a good rate in the 2.5-3.5% I'd guess.
Oh, if you can you can get a good loan broker to see if he/she can get you more options to compare.
We just refinanced at 2.25% for primary, and invested in a rental property where we got a 3.5%. Best I've ever seen for both! I'm happy to share lender recommendations if needed.
@Orlando Ortiz Typically, lenders look at a variety of factors when evaluating an applicant for a loan and yes credit score is one of the many factors.
My favorite one and easy to remember is the 4Cs that lenders look at:
Capacity to pay back the loan
Capital (equity in this case of REFi)
Collateral (lenders are going to be looking at other asset(s) you own)
Credit
At the end of the day, if all is in relatively good shape, you should be getting a good rate in the 2.5-3.5% I'd guess.
Oh, if you can you can get a good loan broker to see if he/she can get you more options to compare.
Ola,
4Cs, I like that, and that is easy to remember. I'm starting to understand the loan process more and more as I talk to all here on BP.
Rental Property Investor · Tampa, FL · Member since 2018 · 64 posts · 16 votes
5y
@Zack Karp- literally I was going to cash out on my primary at 2.875 then the elections occurred and the cash rate rocketed to 3.5 . Since I have 30% equity without cash out he was able to get me back down to 2.875 but I am keeping my ear on the pulse in case then float down again. I am really hoping to lock around 2.5. My home is around 700k so the leap from 2.875 to 3.5 was significant payment increase.
Real Estate Agent · Santa Rosa Beach, FL · Member since 2021 · 16 posts · 4 votes
5y
@Orlando Ortiz I have an 800+ credit score. Going through refi now and was given 2.325% for a 30 year fixed and offered 1.75% for a 15. Year with 1 point (if I recall correctly)