All Forum Posts by: Julio Mallonga
Julio Mallonga has started 1 posts and replied 3 times.
Post: Interest rate for an investment property DIFFERENT from PR?
- Bend, OR
- Posts 3
- Votes 0
Thanks Mr. Coombs and Mr. Patel!!
Post: Interest rate for an investment property DIFFERENT from PR?
- Bend, OR
- Posts 3
- Votes 0
Thank you Mr. Coombs, I really appreciate the feedback! Does anyone second Mr. Coombs?
Since this is a subjective increase and NOT a law or mandate, then it sounds like I will be shopping around for other mortgage lenders in the area.
My follow-up question is: If I (1) find a mortgage lender that has a more competitive interest rate, (2) I close on the investment property at said interest rate, and (3) later on find a good deal to purchase a primary residence - Would I expect to see the interest rate of the primary residence/second purchase be about the same 3.625% interest rate that I was originally offered? I was told by a non-biggerpockets source that if I could show an income from my day job and the income from the rental property as more than my expenses, then the mortgage lender would not necessarily increase the interest rate from 3.625%.
Thanks BiggerPockets community!
Post: Interest rate for an investment property DIFFERENT from PR?
- Bend, OR
- Posts 3
- Votes 0
Is the interest rate for an investment property DIFFERENT from Primary Residence?
Background: I am a first time home buyer. I have great credit (800's). I have a mortgage lender who was referred to me by my realtor. I asked my realtor to alert me if there were any houses that were in my price range, with the intent of purchasing a house as my primary residence and invest in properties down the line.
However, my realtor found a deal for a house that is (1) $24,500 below the market price for the house, (2) has a renter currently occupying the house, and (3) is in an area that is projected to rise in value. Since the current renters are not people we want to evict, we would keep it this as an investment property.
My primary question is: Is the increased of interest rate on an investment property versus a primary residence standard? Why did the mortgage lender give us an interest rate of 4.75% for 20% DP as an investment property VERSUS giving us an interest rate of 3.625% for 20% DP as primary residence? The mortgage lender also gave us an option to put 25% DP to get a rate of 4.25% if we wanted.
Ideally, I would like advice from an investor from Bend, OR. Honestly, I am happy to tap into the BiggerPockets network. Thank you all in advance!