I have been told that a refinance for my duplex contains a higher rate than a single family home.

I am shopping for a refinance with cash out. Are the rates going to be higher because I have a duplex? My credit score is 800 and LTV is about 60% Been quoted 3.65% and total cost is about $700 after factoring in the credits.

A friend got a better rate and paid nothing. Anyone know how?
  • September 01 2012 - San Francisco
  • 0Yes

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Answers (1)

Yes if you use the most common financing which is Fannie Mae or Freddie Mac loan there is a 1% cost adjustment for duplex vs. a single unit. This means all things equal except duplex vs single unit a 300000 loan will have 3000 more closing cost. Rates/costs change every day, to compare to what someone else got is not a worthwhile exploration. Aside from changes in market pricing it stands to reason the scenario was not identical.
  • September 01 2012
  • 1Yes

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