Financing an Investment Property

[Zach Falbo]

I am currently in contract with a investment property here in Florida. I am calling lenders in the area and this is their rate offers thus far.

Cornerstone: 4.75-5.245 30yr 20%down     Hancock: 5.125 25%down    and Quicken Loans: 3.6-5.125 15%down

My question is pertaining to points and if anyone recommends Quicken.  Quicken says that it will cost 3 points for the lowest rate and -3.25 points for the highest rate. My plan is to hold the property for long term rental, but plans could always change as I purchased with equity in the home. 

I am leaning towards Quicken with less money down and actually using the negative point and having a higher rate.

Would you recommend paying for a lower rate or even receiving money for the higher rate? Please explain as to why either way. 

Thank you in advanced!

Zach

[Jeff Dulla]

@Zach Falbo If you plan to invest more, I would save your cash and not take the points. Have you ran a simple interest comparison with the different rates - points versus no points? How much does it save you compared to what you are spending. Also take time value of money into consideration. 

Secondly, I will straight up tell you I am a lender. Regardless, you can find much better than Quicken. Better on rate by a good amount. Better on service and consultation as well. A good LO should be able to troubleshoot this question for you.

Feel free to PM me if you would like but no worries either way.