All Forum Posts by: Cameron Price

Makes sense... but how about option 3 where i say, hey several banks have offered me 4.375% and 4.25%. Can you do better than that on interest rate? Can we get to 4.125%? Thats really what I'm asking, as a "low priority" borrower. Is there an eight or a quarter of a percent wiggle room, or is black and white on a small scale?

I'm learning a TON about the mortgage game. Theres so much that hoes on behind the scenes with mortgages being bought/ sold, etc.

With all this craziness, I just had the thought, are mortgage rates negotiable?

I've called around a bunch the past couple days shopping for the best rate. I've been quoted several different interest rates for the exact same loan. 2 specific examples are 4.375% and 4.25%. (30 yr fixed, NOO)

So my queston is this... are rates negotiable? What happens if I walk in to one of these local banks and tell them that I'll only pay 4%? Do I get laughed out of the bank? Are mortgage originators allowed to adjust rates?

I do understand that they have to make money, but my question is about the negotiability. For instance, I can't go to walmart and my bill is $50, but I offer them $47. Lol. But I can go a lot of places and negotiate.

 Who offers better? 

And what is a "good" sized loan as far as lenders are concerned? If a 50K loan is too small, what is the range they like?

 I just called a local credit union. They offer a good interest rate- prime plus 0.5 (so 3.75% currently), but its a 5 year commitment on interest and 15 year amoritization. Payments would be $430/ month. Too high.

Do you know a credit union that offers 30 year fixed rate? I'll sure call em! :)

 Any particular reason? I currently bank with a credit union, and they wont lend a dime on investment property.

Fast reply! Lol. I'm waiting on 1 local bank to call back now, and have one more that I'm talkig with as well. 

The mortgage broker explained to me that individual banks have a couple products that they can offer, but a broker has access to all the products of multiple banks (14 in my broker's case)... is this your understanding as well? If so, it seems that going through a broker would give me 14 times the options. I'm still learning, so feel free to correct any shortsight on my part.

I'm getting quotes on mortgage terms, etc.

Heres what I currently have:

Rental property appraised at $72,000. 

Looking for 30 year fixed rate mortgage- cash out refinance.

My credit score is 762.

I have a 10K LOC on the property that I'll have to pay off. Other than that, no debt.

Located in a rural area of Darlington, SC.

I have a verbal quote of 75% LTV (so 54K loan) with an interest rate of 4.5-4.75% and 2 point origination fee from a mortgage broker.

Anybody have a connection for higher LTV and/or lower interest and origination fees? Or do these look reasonable considering the market?

I'd like to get 80 or 85% out of it, but that might be wishful thinking.

Appreciate the answers. I wish I had the ability to take that level of risk on to help a friend. I'll be there one day soon enough. I love a win-win situation, and if I could easily absorb a couple months of $1200 payments, I'd sure consider it. 

In this situation, I'm asking mostly to learn what is possible. I'm sure not buying it for 180K :) 

I'm buying 30K properties and turning them into 75K properties.

Welcome to the board! What part of SC? I'm in Hartsville, SC. Small town near Darlington and Florence. I came here from the podcast as well. There's so much to learn here!