Help! Mortgage Rates for first duplex in MN

[Josh Cook]

Hi Bigger Pockets Community, I am currently under contract to purchase my first duplex in Minneapolis, MN. I have a credit score of 795 (it was 800 but dropped after the credit inquiry) and a Fico score of 797 as of October 24th. I'm putting 5% down and getting a conventional fixed rate 30 yr loan and plan to house hack the duplex. The interest rate the lender gave me is ~4.6%. Is that rate way too high for my credit score? I thought I would get a lower rate of between 4-4.25% max. Please help!! Thanks, Josh

[John Woodrich]

Originally posted by @Kevin Romines:

Is it to late to negotiate that the seller pay your closing costs? If you can get that done, then use some of those funds to look at buying down the rate? I typically don't feel a buy down of much more than 1/2 point is worth it, but get the pricing options just to see what the possibilities might be?

Figuring out whether to by the rate down is an easy decision, you just have to calculate the payback. Sure, if you demand a ROI on your purchased points you can factor that into the calc however it would just push the payback out a few months. In properties which plan to be held for a long time it may make sense to buy it down as low as you can.