Another thread on rates

[Ed O.]

I posted a much similar post in another forum and got a combination DSCR lenders (which is fine) and crickets. I'm seeking actual rates and fees people are paying for their money.

Previously, I borrowed where my rate was the 5 year treasury plus 2 points. When the 5 year treasury fell too far, the bank doing this told me they were at the floor. This rate for me was 3.3% on a 5 year balloon with 20 or 25 year ams. These have been bank portfolio loans. All, at most, have had minimal fees - $500 for origination, etc.

I closed a cash out refi this past week at a miserable 8.25%. The lenders I have historically worked with have not punished my rates/fees for new construction, cash outs, etc. They've held to 80% ltv, which is fine for us.

I've got another lender now offering 7.49%.

Where is everyone else at?

I'm not interested in fannie/freddie secondary market loans as they're a totally different animal. I am interested in DSCR loans, portfolio loans, or any other product that could work for me.

Thanks!

[Jason Wray]

Ed,

Over the last few weeks I have seen most DSCR rates around 6.99% at an 80% LTV (Purchase with a Fico above 720+. Cash out refinance 75% LTV rates are hovering around 7.125% with Fico's around 720+. DSCR offers (2) options LPC and BPC Lender paid means you are not going to pay much if any points but get the higher rate. BPC means borrower paid which means you get the PAR rate much lower but looking at points. Most cases it's going to require a 3 year prepayment penalty unless you take the 5 year for the lower rate.

In most cases even though people hate points it makes sense if you run the math to check the recouperation. If you break even is around 12-24 months it’s worth it in most cases it’s a 24-36 month but if you plan on keeping the home for over 10+ years it makes sense to pay points or the rate buy down and wrap it up on the closing costs.

There are ways to finance the points but some lenders do not offer that option. If you want to talk shop or have any questions feel free to reach out. I am always happy to help and talk REI!