Profile picture for alanjacks

Invest rental with 30%down, 800score, 140K salary. What interest rate can i expect on 400k 30yrFix?

I have 5 units renting now all with positive cash flow and 3 with no mortgage.  My house is nearly paid off.  I am looking for another investment property and would like to know what interest rate to use when evaluating the profitability of properties.  Also what difficulty level should i expect on actually getting a mortgage?
  • January 20 2009 - Wilton
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Answers (4)

Best Answer

I am showing 5.5% today with no points.  You could choose to buy the rate down with points, however you stated you would be evaluating the profitability of the properties you will be considering.  If you are keeping it short term I would recommend not paying any points, a long term investment may be worth while depending on the numbers and what you might expect to receive in rent.

It does not sound to me that you would have a difficult time getting a mortgage.  It becomes difficult when you have 4 or more mortgages, however, exceptions can be made based on your individual circumstances.  Hope the info helps, have a great evening!
  • January 20 2009
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You can expect a rate close to 5.75% or 6.0% today if you are purchasing a single unit property.  Less than 75% LTV will have a minimum of 1.75% ad to points, over 75% LTV will have a 3.0% ad, either of which may be hard to offset with a higher rate and rebate to cover the point ad.  A two unit property will have an additional .5% ad to the points (soon to be 1.0%). Current guidelines limit the number of financed properties to 4 including your primary residence.

  • January 20 2009
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Profile picture for Home Lending Pros.
4 units is the max for refi's
  • January 20 2009
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Profile picture for Rob Cochems
Are you open to paying points?  As there is a large difference for rates with and without points.
  • January 20 2009
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