Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated almost 4 years ago on . Most recent reply

Interest rate 3.62% with 2 points
Hello BP community
I'm in the process of buying a duplex in Florida for $350K with 25% down. Lender quoted 3.62% with 2 points for investment conventional loan (non owner occupied).
I Just got a loan estimate which is showing closing costs are $18K, loan costs itself are $11K, this is the most expensive closing costs I ever had.
Is this loan a ripoff and I should shop around? I would appreciate you opinion.

Most Popular Reply

- Washington, DC Mortgage Lender/Broker
- 2,759
- Votes |
- 4,876
- Posts
It's far from a rip off.
Conventional rates are on the rise and yet they're still some of the lowest rates in history. The par rate for a 2 unit investor loan is in the neighborhood of 4.875%. Par means no discount points. I'm seeing 2 points gets you down to about 3.25% (moderator, US Commercial doesn't do conventional financing, so this is not a solicitation), but there's no way to define this as a rip off.
Your points are going directly to to buying your rate down and total lender fees for underwriting/processing/administration etc...of $1290 are not horrific. You've got significant title charges, taxes prepaids etc..., but it's a good size loan which equates to larger costs.
Stephanie