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Updated over 4 years ago on . Most recent reply

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Joel Hutchinson
  • Rental Property Investor
  • Glendale, CA
20
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58
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Are these terms reasonable for borrowing against rental property?

Joel Hutchinson
  • Rental Property Investor
  • Glendale, CA
Posted

For rental property held free and clear with tenants in place, does anyone know if the following terms reasonable? 

  • - interest rate of between 5.5% and 7% based on your credit score, loan to value, loan amount and the cash flow.
  • - Maximum loan amount up to 75%.

  • - At 70% the loan would be as low as 5.75% on a 30 year fixed rate loan based on a minimum credit score of 740.

Thanks in advance!

Most Popular Reply

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Chris Mason
  • Lender
  • California
10,791
Votes |
9,935
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Chris Mason
  • Lender
  • California
ModeratorReplied

You wouldn't be asking the question if you could get a solid Fannie-type 30YF loan with a sexy rate, and I'm sure you're posting the best of what you could find rather than the worst, so yup that's of course reasonable, markets find equilibrium. Supply/demand and risk premium. 

  • Chris Mason
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