Duplex interest rate 8.25% good?

Question

I am getting quoted 8.25% interest on a duplex with conventional loan and 25% down. Does that sound good or not? No points, not sure if it's worth buying down since rates may fall?

Russell Brazil · Answer

Owner occupied? Seems high.

Investor loan? Seems ok.

AJ Wong · Answer

With 25% down conventional (full income verification) even with 2+ units rates should be healthier..I wouldn’t suggest investing on the rate so much as the quality of property and analysis. If it ‘works’ at 8% it will work at 6% but it will be a lot more competitive for buyers when rates drop further.. Check in with @Joseph Chiofalo for a quick second lender look. Should be able to reduce the rate or similar terms but with less down.

Good luck!

Ko Kashiwagi · Answer

Happy to take a look, feel free to DM

V.G Jason · Answer

Check other lenders, it wouldn't surprise me if the underwriting is stellar but the rate is higher than expected. The economy is crunching right now, make no mistake about it. Wall st vs main street is wide, and it's going to get wider before it tightens.

Daniel Hyman · Answer

You may want to shop around. Get quotes from multiple lenders to ensure you're getting a competitive rate.

Negotiate by using your credit score, down payment, and comparison quotes as leverage.

Also, a mortgage broker can help find the best rate tailored to your situation. Consider speaking to one.

Sam Booth · Answer

She's offering thus at no points but credit is 800 and it's an investment with tenants currently living in both units

Joseph Chiofalo · Answer

Hi Sam,

Where is the property located and how is your credit?

Are you using the property as a primary residence or investment?  Assuming credit is healthy there are lenders that will offer more favorable terms.

Devin Powers · Answer

Rate will of course depend on numerous factors but it’s always worth taking a second look because you can probably find better than 8.25% for a conventional loan even on a duplex. PM me if you want to look at other options!

Ko Kashiwagi · Answer

Hi Sam,

It's hard to say without looking at the specifics (DTI, loan amount, investment/primary, etc), but it sounds like it could be lower given your good credit. Perhaps worth comparing with something else

Duplex interest rate 8.25% good?

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