Mortgage rate at 6.5-6.7% for a 5% down

[Adam Pervez]

Hi,

I have worked with a few lenders and have been seeing rates for a 5% owner occupant conventional loan floating around 7.1 - 7.3%. I recently got in touch with a smaller bank that is able to do a 6.5% interest rate. Is that normal? Everything I was being told sounded too good to be true and makes me wonder why most people aren't doing this. Wanted to see if anyone has had any similar experiences with credit unions or smaller banks that originate their own loan.