Typical lending rates

[Shayne Whittington]

Hello BP

I'm a relatively new investor with 4 units under my belt and 1 under contract right now. I've only financed one deal and will be financing this property under contract. I wanted to ask what the typical lending rates were for a non homestead investment property? I feel like my interest rates are kind of high for my credit scores. (6.125% for my triplex and 5.875% for this SFH) So I wanted to ask what other people are typically getting and if I should be looking at a different lender or I should just calm down and factor in higher rates in my next property?

[Joe Splitrock]

@Shayne Whittington I just locked in a rate yesterday on a non-owner occupied conventional mortgage, 30 year fixed. My rate is 4.875 with no points and very low closing costs. I know others are getting a little lower with commercial loans, but they are only fixed for 5-7 years. I much prefer the security of 30 year fixed, but that may not be an option for some due to quantity of properties or unit quantity.

Rates are lower right now. I paid over 5% back in December. The interesting thing is that rates are lower now even though prime has not decreased. This signals that banks don't see rate hikes in the near future, which is based on what the fed stated.

I know many predict higher rates in the future, but I am not convinced. I think we are in a new age where fed manipulation of interest rates is used to stimulate the economy. For that reason, I don't see us returning to 6, 7 or 8% rates in the future. That being said, I like locking in long term, just to eliminate risk of loans coming due at a bad time.