broker saying you shouldn't do 5/1 on non-owner occupied

broker saying you shouldn't do 5/1 on non-owner occupied

Palo Alto, CA · Member since 2014 · 104 posts · 14 votes

for owner occupied conforming loans it seems the rate difference between 5/1 and 30 yr fixed is ~.75% -1% ( I am talking about no-point no fee)

I was thinking the same differential will apply for non-owner occupied. I am looking at a townhome as investment property.

My broker says for no-point, no-fee the and non-owner occupied the price difference is only .25%. Reason: fannie mae charges much more points for 5/1 non-owner so the rate difference doesn't remain the same.

IS that right?

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