Lenders offering 10 year ARM mortgages on Investment properties?

[Keith N.]

I'm looking for any recommended lenders, credit unions, etc that offer favorable 10 year ARM mortgages on single family or small multi-family investment properties. I'm currently getting quoted about 7.625% + points for 30-year fixed loans.

If I could find a lender offering a 10/1 or 10/6 ARM mortgage (30 year amortization) significantly lower (in low 6's), I would prefer that.

[Zach Wain]

I think those are competitive quotes.  Everyone loves to throw around rate - but a lot of people do not mention the discount points and prepay term.  A 5 yr Prepay on a high interest rate that you may want to refinance in 1-2 years does not sound like a great idea.

Be wary of the Prepay!  I recommend a 1-2 yr PPP timeline.

I would not sell this unless you wanted it, but for comparison I can do a 80% loan to value 5yr PPP DSCR loan 30 yr fixed is at 7.75% with 3% in points today. But I would rather sell someone a 8.5% 30 yr fixed with a 2 yr PPP and 2% in discount points.

Higher rate, but less fees, and the ability to get out of it sooner.  I did not comb all of my investor options to make sure that is the best I have, but a quick example of focusing on costs and the PPP term.