Loan interest rate for rentals

[Account Closed]

Hey BP have a question. Is 6.15 fixed interest rate too high for rental properties investment?

That’s what my local bank offer to me.

[Jared Lasko]

@Account Closed

That depends. What are the loan details?

- multiunit

- commercial loan or personal

-length

etc

[Account Closed]

@Jared Lasko is a comercial loan.

[Jared Lasko]

@Hector Morales

Commercial loans are inherently higher interest due to higher risk. If it is a SFR that seems a little high regardless of the loan terms. If it is a multi-unit, especially if it is a duplex, then it seems about right. More units than that, the higher your interest rate will go. But keep in mind how loan length will also effect your rate; longer the loan, higher the interest.

[Account Closed]

@Jared Lasko yes it is SFH. thanks for your advise. I need to educate more about how to finance.

[Anthony Dooley]

That is about right for an investment property loan. If rates decrease next year, it may be worth refinancing. I assume it is for a 15 or 20 year amortization. This is normal as of today.

[Account Closed]

@Anthony Dooley it is a 15 years fix loan for SFH. Thanks for your advise.i will take that loan since I will close on the house this Friday. I wasn't aware about interés loan since I used to buy all my properties by cash.

[Clint G.]

@Hector Morales

I financed my SFH for 5.75 @ 30yrs/conventional about 5 months ago, and rates have dropped since.

Anything over 6 seems a little high. I assume your credit is top tier?