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Updated about 2 years ago on . Most recent reply

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Jacob D.
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15
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What are y'all getting for rates?

Jacob D.
Posted

In the Boston area, I was quoted at 7% for an investment property (25% down) conventional 30 year with 800 credit score and really good W2 income history. Anyone get cheaper than that recently?

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@Jacob D. @Lien Vuong @Sean Kelly-Rand

I have closed a 6.125% on a RI 6 unit mixed-use last week - should be getting the same rate for the client for his next property in RI. I got 4 term sheets for him and one bank was particularly more aggressive. (Contacted about 40 banks).

Most local banks have a spread between 2% and 2.75% over the 5yr FHLB which is 4.54% today so I would expect rates between 6.54% and 7.29%. 

Part of the conversation is all lenders are predicting in 2-3 years you are refinancing - so negotiation is both on the rate today and structuring the deal (prepayments) so that its easier to refinance when rates fall.

Because lenders are predicting short term rates to rise more, its hard for them to decrease their spread, although they can. 

However, many bridge/construction loans are +1% over Prime - and prime is 7.75% , so rates for those products are around 8.75%. 

Three weeks ago RE SBL rates were down to around 5.5% for boston (top market) - but I think those are up to around 6% after the last fed increase.  

If either of you want me to find financing for you - I typically charge 50bps to 100bps at closing (on the loan amount). 

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