Called a bank today and they are seeking 5.25% with $4,500 closing costs for a 90k loan on a rental with fewer than four units.Both the rate and the closing costs seem high. What are others seeing these days? Thank you

@William Coet For a conventional loan, that would be high on the rate. The closing costs are maybe a tad high. For a DSCR that is high a high rate and a tad high on closing. For an Asset or Bank Statement, that is about right. Non-QM will ding you for low loan amount and increase your rate. $150k is a common threshold, although some lenders will go lower without a penalty. Cheers!

That's really high. Laughable. Find a broker, they can cover the spread much better. The spread with investment properties is huge these days. You can find something in the low 3's, conventional with 700+ credit and 30% down on 1 unit SFR. 25% down probably puts you in the mid 3's. That's with a roughly $1,000 lender fee and no points. 4 unit with 30% is also around mid 3's with a good broker. I'm not quoting rates as I'm not licensed in your state, but just giving you an idea of what you should be able to find because generally speaking rates don't change based on what state you're in. When you're shopping for a mortgage just focus on the lender fee and the rate. That's all the lender has control over. 5.25% is way out of range.

Credit score is a big factor,but if you have good credit even ona smaller loan amount that seems high

Thank you Nick, How can I determine what type of loan this is?

That's really high for a conventional mortgage. That's kind of high for a DSCR loan unless your credit score is in the 600's. If that's the case, it's about right for an 80% ltv purchase.

What are Current Rates and Closing Costs For a Rental Mortgage?What are Current Rates and Closing Costs For a Rental Mortgage?

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What are Current Rates and Closing Costs For a Rental Mortgage?

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