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Started By
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Investment property interest rate?
Posted on 5/16/20 at 2:47 am
Posted on 5/16/20 at 2:47 am
Been calling local banks and some of the big banks, and the best rate I’ve been able to find is 5.6% on a 5/1 20 year. I found some mid 4% rates, but they all have minimum loan requirements. The property I have will be purchased at 48k, so I need a sub 40k mortgage.
I’ve got financing lined up, just wanted to pop in here and see if MT had any banks/lenders they could point me to.
Property is in St, Landry Parish. Should appraise over the 80% Ltv.
My credit score is >750
Debt to income should meet all requirements
Down payment on hand
Athletixtd@yahoo.com
I’ve got financing lined up, just wanted to pop in here and see if MT had any banks/lenders they could point me to.
Property is in St, Landry Parish. Should appraise over the 80% Ltv.
My credit score is >750
Debt to income should meet all requirements
Down payment on hand
Athletixtd@yahoo.com
8
Posted on 5/16/20 at 8:00 am to Athletix
Rates are probably high because of the low value of the property. Less $ for the banks and higher risk
Posted on 5/16/20 at 8:05 am to Athletix
No major bank is financing a 40k loan
Take whatever rate you can get cause that's like buying a used Tahoe
Take whatever rate you can get cause that's like buying a used Tahoe
Posted on 5/16/20 at 9:54 am to Athletix
Most banks I have talked to recently are around 4.75. This is odd to me because I have several properties financed at this rate back when prime was 4.5. Prime is now 3.25 so I am hoping investment rates will edge down at least some for strong borrowers. It is just a guess but maybe banks are nervous right now. I realize 30 yr mortgage rates don’t move with prime/fed funds but can’t figure out why short term investment property rates have not moved down with fed fund at 0
This post was edited on 5/16/20 at 9:56 am
Posted on 5/16/20 at 10:09 am to Athletix
April 22 closed on my fifth investment property. 30 years, 4.99% and 15% down.
Posted on 5/16/20 at 10:32 am to rpg37
quote:
15% down.
must not be a mortgage company.
most require 20% down on 1 through 4 properties
5 and up 25% down
Posted on 5/16/20 at 1:33 pm to rpg37
quote:
April 22 closed on my fifth investment property. 30 years, 4.99% and 15% down.
Could you please tell us where you found these terms?
Posted on 5/16/20 at 2:44 pm to tenderfoot tigah
his interest rate and length is believable as i have that rate and better on some of my properties. I'm just curious about the DP %.
Posted on 5/16/20 at 3:00 pm to Fat Bastard
Didn’t realize people got 30 year loans on investment properties. Mine are all around 5.5, 15 percent down, 20 year.
Posted on 5/16/20 at 3:07 pm to Fat Bastard
Are these properties in an LLC?
Posted on 5/16/20 at 3:24 pm to MrJimBeam
quote:
Didn’t realize people got 30 year loans on investment properties.
absolutely. all mine are. more cash flow. albeit more amortized interest. of course unless paid off early.
This post was edited on 5/16/20 at 3:26 pm
Posted on 5/16/20 at 4:22 pm to Fat Bastard
This is multiple steps out ahead of myself, but good chance I cash out refinance this house when I’m done renovating and have it rented. I still want to secure the best possible loan going in, because plans may change and properties might not pop up in the range I want. I don’t want to refinance unless that money is going directly into another asset. But at the moment I’ve got another house (vacant/abandoned) that is interested in selling. They aren’t very motivated, so I’m hoping they are still around in a few months and still want to sell. I want to snowball this single family rental home thing. With low interest rates I don’t mind the extra leverage on a cash flowing asset. Don’t want to miss out on good properties
Posted on 5/16/20 at 4:38 pm to Athletix
quote:COVID-19 has entered the chat
cash flowing asset.
Posted on 5/16/20 at 4:45 pm to Athletix
quote:
I want to snowball this single family rental home thing.
absolutely
quote:
With low interest rates I don’t mind the extra leverage on a cash flowing asset. Don’t want to miss out on good properties
right. use smart leverage to expand. You can always years down the road choose to pay some off for more cash flow and less exposure. If you do not like dead equity you can get some HELOC's on them after paid off so you have options should you want to use that for DP's/cash buys/flips, etc on more properties and expanding yet again. So many options in this business.
This post was edited on 5/16/20 at 4:48 pm
Posted on 5/16/20 at 4:46 pm to Athletix
Doing cash out refi on two right now. 3.875 30 yr. but I have in my name then transfer to llc. I know it has that clause they can call the loan on you if you transfer but I know the loan officer and they service it so 99% won’t happen.
Posted on 5/16/20 at 4:58 pm to Athletix
Just got 4.75%, 20 yr am, 5 yr bal. 20% LTV on a build to rent. I’m a general contractor, so I just rinse and repeat. This is basically a zero down process for me, because the cost to build is below 80% of the appraisal. The smaller banks are definitely the way to go. Once you have a good track record all you have to do is email the deal to your guy and he gets an approval in no time.
This post was edited on 5/16/20 at 5:04 pm
Posted on 5/16/20 at 5:28 pm to drenko50
Can you send me a reference? I called a host of small banks and was getting quoted 6%. 5.5 was best I found at the local bank where I bank. I believe gmfs was around 4.4ish% maybe better a few weeks ago, but again 70k minimum.
Posted on 5/16/20 at 5:34 pm to Athletix
It’s probably a combination of factors getting you that rate. Loan amount and experience figure into it. The loan I described above is for building two houses loan amount 290k. Where are you located?
This post was edited on 5/16/20 at 5:35 pm
Posted on 5/16/20 at 7:24 pm to drenko50
South Louisiana. Just west of BR
Posted on 5/16/20 at 7:28 pm to Athletix
They won’t lend that far away from Lafayette.
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