Best Mortgage deals for Chicago 3 unit

7 Replies

Hello,

I wanted to see about getting the best mortgage deal in the Chicagoland for a 3 unit building. So far the deal I have secured is 3.75% with 10% down and no PMI, and it comes direct from the bank. Does anyone know of any better deals or ways to get better rates? Thank you very much! PS. I am a complete novice in this so please excuse my lack of knowledge ahead of time.

@Boris Le as you think about this question, what constitutes the best deal for you? Are you trying for the lowest rate? What about the lowest down payment possible? I have noticed over the years that a lot of my clients are very rate sensitive when they buy, but then they turn around and try to cash out refinance a year later! What are your goals with this loan? Is this truly going to be a loan you hold for a long time? 

In terms or rates, I have recently seen a client close with a sub 3% interest rate on a 4 unit here in Berwyn. I believe there was a rate buy down involved, etc. 

Can you owner-occupy the property? Lenders offer lower rates for owner-occupied homes compared to investment properties.

@Boris Le - Like the other above suggested if you can owner occupy you can put down only 3.5%.    Also, I'd worry a little about the actual rate and emphasis on working with the right people.  

I've personally found that you tend to get what you pay for and more often than not it's actually better to pay a little more.  

Either way, I'd link up with @Zack Karp or @Michael Facchini and see how they can help.

This is a great point! I am trying to avoid PMI and try to get lowest possible down payment without PMI to have cash in case of repairs etc. so far it’s been 30 year with 3.75% interest and 10% down. I would live in one of the units. 

Originally posted by @John Warren :

@Boris Le as you think about this question, what constitutes the best deal for you? Are you trying for the lowest rate? What about the lowest down payment possible? I have noticed over the years that a lot of my clients are very rate sensitive when they buy, but then they turn around and try to cash out refinance a year later! What are your goals with this loan? Is this truly going to be a loan you hold for a long time? 

In terms or rates, I have recently seen a client close with a sub 3% interest rate on a 4 unit here in Berwyn. I believe there was a rate buy down involved, etc. 

 

Hi Jonathan,
Thank you for your suggestions. I will reach out to Zach and Michael. I know with FHA interest rate is 3.5% but it will end up having a PMI which would reduce price of the building I could buy. 

Is there an option with 3.5% down payment without PMI?

Thank you. 
Originally posted by @Jonathan Klemm :

@Boris Le - Like the other above suggested if you can owner occupy you can put down only 3.5%.    Also, I'd worry a little about the actual rate and emphasis on working with the right people.  

I've personally found that you tend to get what you pay for and more often than not it's actually better to pay a little more.  

Either way, I'd link up with @Zack Karp or @Michael Facchini and see how they can help.

 

@Boris Le , depending on the deal specifics you might be able to do better here. I'd need to know more of course (purchase price, location, your finances, etc.) to say for sure. Also, PMI isn't always a bad thing, especially if it gets you a lower rate and then you can eliminate it within a few years without refinancing. Food for thought....