Financing a 4 plex - term sheet from lender

[Ben Tiggelaar]

I have a 4 plex in Austin, TX under contract that is fully rented. I have a term sheet from Guaranteed Rate for a 30 year fixed conventional mortgage at 4.875% with no points. Is this a fair rate and pricing right now? Are there any others that you know to be more competitive right now? 

[Troy Ballew]

@Jay Hurst

Agreed, it isn’t a terrible offer. 4.875% with no points is about right for an investment property right now.

I locked at 4.00% for a 30 year term with Guaranteed Rate on a duplex about 4 weeks ago and paid for almost a point to keep the rate down. I’m planning on holding for a few years, at least.

We’ll probably see 5.5% to 6% late in 2022 for investment properties after the Fed gets going on their rate increase campaign this March.

Troy