Going rates for conventional 30 mortgages for investors

[Carlos Webel]

Hi all,

I'm selling a condo in Miami, FL and reinvesting the proceeds in several properties in Houston, TX. I'm doing a 1031 exchange so I'm time bounded on the identification of the replacement properties (45 days). I made couple of cash offers with enough time built in the closing date to try to get conventional mortgages in before closing so I can buy more properties with the cash proceeds from the sale of the condo. I'm working with a lender (mortgage broker) that confirms he can close on time. However, I was surprised when I saw the rates. Below the details of the financing on one the the properties:

- 3/2 SFR

- Purchase Price = 146k$

- Down payment = 36.5k$ (25%)

- Loan Amount = 109.5k$ (75% LTV)

- Loan Type = 30Y Fixed (Non-owner occupied / Investment) (Fanni mae loan)

- Interest Rate = 5.25% (No points upfront)

- APR= 5.435%

The loan will be on my personal name. This will be my 4th conventional loan, my credit score is 760+ (FICO) and my assets/liability and monthly income Vs expenses position is very strong. 

I was expecting the interests rate on this 30Y Fixed loan to be around 4.5% o less. Am I missing something major here or is this a very bad deal and I have to talk to a different mortgage broker?

Rgds, Carlos

[Stone Teran]

Originally posted by @Account Closed:

Chris M. Who said I'm putting 25% down? I clearly stated 80% LTV

 Which is <25%.