Little suprised by interest rate

[Ryan Young]

I am getting ready to pull the trigger on my first rental property soon so I began the pre-approval process.  Just got my numbers back from my lender and she quoted me with a 5.625% Interest Rate.  This is way higher than I was expected and is making me second guess some of the properties that I ran the numbers for.  Also, on 100k properties, closing costs would be close to 5k.  I do have a 720 Credit Score as well.

Just curious to see some opinions on this if I should look into another bank or do these numbers seem pretty normal? Look forward to getting some insight from you guys.  Thanks!

[Alexander Felice]

investment rates for residential mortgages are 5.56% right now (depending on how you move around points). You may be able to get a lower rate in trade for cash. down to 4.75% or so. I personally wouldn't bother on that loan amount, payback period of the rate margin will be a few years and cash is more valuable right now.

get it while you still can. The era of super low interest rates are behind us.