Investment Property Mortgage Rates
I’m trying to buy a SFH as an investment property in CA. Have been noticing mortgage rates for primary residence is around 2.5% to 2.75%. However, was shocked to learn the current rates for investment property mortgage is 4.75% for 20% down or 4.25% for 25% down for 30y. I’ve got a very low debt-to-income ratio and credit score of 780+ on CreditKarma app. Is this a common number for today’s rate? I understand it goes up and down daily but the difference feels too high. If you recently purchased a SFH as investment property in CA, can you please share some details to help me? - downpayment % - mortgage rate - cost of house - location/city - date/timeframe of purchase (eg. July 2021) - name of lender Thank you!! TC: $560K Yoe: 10 #mortgage #housing #investments #realestate #rentals
Shop around. I got mine for 3.25 and this was a year ago. I would expect it to be lower but property type also plays a role as condos and potentially multiplex tend to be slightly higher rate.
What type of property did you buy? SFH?
We got 3.125% on a rental property. Our credit score is above 800 and after appreciation the loan to equity ratio is 40% so a pretty safe bet for the bank.
I got 2.86% from Wf in Seattle area for investment property with 25% of down payment . Is it ok?
How long ago was it? And what type of property is it? The rate sounds great, is WF wellsfargo? Is yours 15y or 30y?
Yes. And let this be a warning to everyone that told me my interest rate is ridiculously high on a 15 year despite having an 830 credit score and debt to income ratio of 2% on a 60% down payment.
What was the interest rate you got for the investment property you purchased?
4% two years ago. 2.6% refinanced now. The problem is there is only one company in the US that handles investment loans and that is Fannie Mae. When you shop for a rate these are just middlemen that are going to turn around and just sell it to Fannie Mae for a sliver of the total. Then Fannie Mae will appoint a servicer who may or may not be the company you signed with. Basically it is a monopoly.