First rental financing

[Doug Alverson]

Hey Everybody,

I'm working on setting up the financing for my first property (SFH rental) and was hoping for a bit of help. I work at a large national bank here in Minnesota and have been working with my regular mortgage guy there. My question is, are the rates/terms substantially better if I were to look at the local community banks/credit unions? I started the process at my bank due to my familiarity with the mortgage guy and the ease of him already having most of my info. Am I making a mistake? I don't want to leave a bunch of money on the table but as an employee, we get some breaks on closing costs, etc. Wasn't sure if those breaks would offset any small rate difference. Just for reference, I'm buying the house for $140k, it's probably worth 180 as it sits and 250 fixed up. The 20% down would come from a HELOC and I'd have a mortgage on the remainder. Any help would be appreciated. Thanks.

[Todd Solberg]

Not only the mortgage rate but what is the APR in comparison? 6.146 is what you listed. From my understanding this is the rate when considering all associated costs correct? Is the APR dependent on if you pay out of pocket for closing costs, etc? Apples to apples it may help get a good comparison on a long term buy and hold. Does APR ever play a factor? Thx!