Multifamily mortgage owner occupied investment property

[Drew Slew]

For a jersey city multifamily purchase i am looking at some 20% down 30yr fixed mortgages. It would be an owner occupied 2nd mortgage, and have to rent my current place out - it seems they need to see a rent lease to show how much I would be able to get for my current place. 

Anyone in/been in a similar situation? Im seeing around 4.25% w 0.75 points on 30yr mortgages, anyone seen better in Feb 2018? 

[Chris Mason]

Originally posted by @Drew Slew:

Helpful, thanks, thats what i thought. Would you go with points, and a 10yr ARM vs a 30yr fixed? i might sell the place before 10 years, most likely, idk. You can always just refinance later into a fixed rate mortgage i assume (hoping of course rates will be better not much worse)

Rates, even though we recently hit a 4 year high, are still historically low in context. I'd lock as much into 30YF as possible while rates are still historically low. 7% is a historically normal rate. When rates are trending upwards, as they are now, the difference between an ARM's teaser rate, and a 30YF rate, get smaller and smaller, since ARM demand increases. The time to get the most short-term savings by going with an ARM is actually when rates are down, not up.

Like @Brendon Foster says, rates are moving all over the place very quickly. Rate quotes, with no ratified contract (needed to actually lock), are pretty meaningless right now.