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Updated over 4 years ago on . Most recent reply

Are these terms reasonable for borrowing against rental property?
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

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.