Duplex interest rate 8.25% good?

[Sam Booth]

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?

[AJ Wong]

Quote from @Sam Booth:

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?

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!  

[Sam Booth]

Quote from @AJ Wong:

Quote from @Sam Booth:

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?

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!  

Thank you! My credit is 800 so it was surprising. Where do you think a good rate is today on duplex?

[Ko Kashiwagi]

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

[Devin Powers]

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!

[Sam Booth]

Quote from @Ko Kashiwagi:

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

They are using Rocket Mortgage and can close in about 17 days. It's for a duplex (no personal use) DTI and everything is good. In California. Would you have a better rate? Only thing is she's about to order the appraisal.

[Ko Kashiwagi]

Happy to take a look, feel free to DM

[Joseph Chiofalo]

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. 

[Sam Booth]

Quote from @Joseph Chiofalo:

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. 

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

[Daniel Hyman]

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.

[Russell Brazil]

Owner occupied? Seems high.

Investor loan? Seems ok.

[V.G Jason]

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.