Four Unit Multi-family, Owner Occupied Investment, Loan Interest Rate Question

[Michael Allen]

Hey everyone!

I'm not new to purchasing properties, but this will only be the second property I've ever purchased and the first in this new area. My first property was a Single-Family home right before the pandemic in late 2018. 

I've gone through the process of shopping out a loan for the property and it was decided that I'd go with a loan originator who initially told me the interest rate would be anywhere from 5.5-6%. Now I'm being told that the interest rate is more realistically going to be 7.125-7.6%, which makes the purchase significantly less desirable.

So my question: Is 7.125% market rate or is this something I should be looking into?

Necessary Stats:

Credit Score: 740+
Loan Type/Amount: Conventional/$320K
Projected Income: $3100 (including me paying myself rent)
Down Payment: 5%

Let me know if there is extra info needed and thanks ahead of time for any advice that is offered!