Buying a condo- higher interest rates? | TigerDroppings.com
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SCUBABlake
LSU Fan
RIP WT6
Member since Jan 2008
40099 posts

Buying a condo- higher interest rates?

I'm a former agent, but dealt exclusively with single-family sales and property management, so my experience with the sale of a condo is zilch.

The lender told me that condo loans typically come with a higher interest rate. Can anyone tell me why that is? I have a good credit score (730-740) and they are quoting me 3.75%. I was hoping to get around 3%. Is this the norm?


Mr.Perfect
Louisiana
Member since Mar 2013
7223 posts

re: Buying a condo- higher interest rates?
Most condo associstions make it harder to approve because you are not handling the indurance. Also precent being rented out.


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Mr.Perfect
Louisiana
Member since Mar 2013
7223 posts

re: Buying a condo- higher interest rates?
Higher risk.


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Mr.Perfect
Louisiana
Member since Mar 2013
7223 posts

re: Buying a condo- higher interest rates?
Higher risk.


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JMTIGER85
LSU Fan
New Orleans
Member since Dec 2006
564 posts

re: Buying a condo- higher interest rates?
Plenty of banks got burned in the condo market. A condo is an undesirable piece of collateral. There are more factors, but lIke the poster above said. Higher perceived risk, means a higher rate.


SCUBABlake
LSU Fan
RIP WT6
Member since Jan 2008
40099 posts

re: Buying a condo- higher interest rates?
Thanks guys.

Just submitted my highest and best- cross your fingers!


bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27097 posts

re: Buying a condo- higher interest rates?
Don't do it.


I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
34049 posts

re: Buying a condo- higher interest rates?
quote:

Don't do it.


ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
7603 posts

re: Buying a condo- higher interest rates?
High rises in downtown nashville are on fire. My client yesterday was quoted 2.85 on 15 yr from his credit union with 25% down. That's pretty good IMO.


I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
34049 posts

re: Buying a condo- higher interest rates?
On fire huh? Sounds familiar.

If I can't own the land underneath on a fee simple basis, I dont touch it.

Besides,Franklin is where the players play.


ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
7603 posts

re: Buying a condo- higher interest rates?
It's crazy market here. Pull up realtracs.com and check what condo's are selling for and renting for at ICON, Encore, & Adelicia for starters. Let me know when you need my services

quote:

Besides,Franklin is where the players play.


Two more 1M under contract in my hood last week. Feels good at 1000 less sq. ft but in at 575k
This post was edited on 5/5 at 11:08 am


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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
2068 posts

re: Buying a condo- higher interest rates?
3.75% on a 15yr or 30yr? on a 15yr that is way freakin high even for a condo..


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tigers444
New Orleans Saints Fan
Member since Jun 2009
2891 posts

re: Buying a condo- higher interest rates?
Do you mind saying what lender are you using in Dallas? Mine is quoting me around 4% for a condo. I'm still shopping around though.


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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
2068 posts

re: Buying a condo- higher interest rates?
blake i might have a solution for you 3.25% fixed 15yr and i even have a 20yr rate for the unwarrantable condo..max ltv is 80% though..


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