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Old 03-02-2014, 11:24 AM
 
Location: Southern New Hampshire
9,507 posts, read 16,398,038 times
Reputation: 33056

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Quote:
Originally Posted by Luvmom611 View Post
With 800+ credit score, that is the rate we have from lenders with no points
It sounds like a rate for a primary residence, NOT an investment property ...

Quote:
Originally Posted by FalconheadWest View Post
And you were honest with telling them it was for a rental and not a primary residence? I find it very hard to believe... I have buyers buying a $700k house and only financing $200k with 820+ credit scores and are still getting 4.375%.
So this ^^^ .

The banks in my area charge I think .5% more for investment properties (AND require a 25% down payment, minimum). YMMV.
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Old 03-02-2014, 01:10 PM
 
9 posts, read 48,233 times
Reputation: 10
Quote:
Originally Posted by Luvmom611 View Post
Hello,

Can anybody throw some light on

Whether to go for 3.125% 15 yr vs 4.125% 30 yr mortgage for a rental investment property (200K worth) ? Thank you
Could you please let me know what company offers the rate of 3.125%? I am looking for a mortgage.

Thanks.
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Old 03-02-2014, 08:37 PM
 
10 posts, read 30,966 times
Reputation: 15
Quote:
Originally Posted by ButtonHouse View Post
Could you please let me know what company offers the rate of 3.125%? I am looking for a mortgage.

Thanks.

Hello, I contacted lenders through bankrate.com

Lender info
NMLS # 49636
State Lic # 49636
3.125%
Fri Feb 28
3.125% at 0.000 pts
30 day rate lock
Payment: $947
Fees in APR:
$0
More details

Next
1
1
1
2
2
1
1
3.106
0.000
939

Lender info
3.106%
Fri Feb 28
3.000% at 0.000 pts
30 day rate lock
Payment: $939
Fees in APR:
$995
More details

Next


Read more: Mortgage Rates in Dallas, Texas by Bankrate
Follow us: @Bankrate on Twitter | Bankrate on Facebook
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Old 03-02-2014, 08:40 PM
 
10 posts, read 30,966 times
Reputation: 15
Quote:
Originally Posted by karen_in_nh_2012 View Post
It sounds like a rate for a primary residence, NOT an investment property ...



So this ^^^ .

The banks in my area charge I think .5% more for investment properties (AND require a 25% down payment, minimum). YMMV.
As I have no other mortgage payment or a house on my name, lender seems to quote primary residence rate. This will be my first house purchase on my name. My husband owns a house , no mortgage, but that is on his name.

You are right, If investment property, rate is little bit higher. As the lower rate is already locked and we are closing soon, is there a process to change primary residence to investment property?
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Old 03-03-2014, 01:27 AM
 
Location: Southern New Hampshire
9,507 posts, read 16,398,038 times
Reputation: 33056
Quote:
Originally Posted by Luvmom611 View Post
As I have no other mortgage payment or a house on my name, lender seems to quote primary residence rate. This will be my first house purchase on my name. My husband owns a house , no mortgage, but that is on his name.

You are right, If investment property, rate is little bit higher. As the lower rate is already locked and we are closing soon, is there a process to change primary residence to investment property?
You need to contact your lender IMMEDIATELY. You will be signing at least 1 document that certifies that the house you are buying is your PRIMARY RESIDENCE -- it is fraud to sign that when it is really an investment property.

The "default" for lenders is primary residence so that's what the initial quotes usually are, but I am 99% sure you would have had to check off a box on the loan documents after you got them, and you must not have checked off the "investment property" box. I don't mean to sound harsh, but it's hard to see how that could have happened by accident?

Again, contact your lender right away!!
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Old 03-03-2014, 05:29 AM
 
Location: Scottsdale
3,032 posts, read 2,371,428 times
Reputation: 5822
Quote:
Originally Posted by FalconheadWest View Post
How would you get 4.125% as an investor when "regular" 30 year rates are about 4.5% with 20% down right now?
Stellar credit.
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Old 03-03-2014, 07:03 AM
 
Location: Austin
7,238 posts, read 20,604,582 times
Reputation: 9988
Quote:
Originally Posted by karen_in_nh_2012 View Post
I don't mean to sound harsh, but it's hard to see how that could have happened by accident?
This doesn't happen on purpose when she was called out on 2/27 that she was lying about it being a primary residence. She just chose to ignore the comments and continue with mortgage fraud. I love when people announce fraud like this in a public forum, like they can't track the IP address... not a smart move to "play dumb" because she doesn't already own a home. It's still investment and NOT primary residence.
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Old 03-03-2014, 09:45 AM
 
10 posts, read 30,966 times
Reputation: 15
Wow , we are still deciding on property, inspection etc.We DONT have any loan documents sent by lender or signed anything yet. Also we have nt provided any documents to lender like income statements etc if that is your next question. Just provided SSN and rate locked as per the lender. Closing can be done anytime. Not sure if different lenders has different process. Once we are good with inspection, AND if we want to move forward with this property, i will talk to the lender on how to go about it.

AND my original post and question was if there is a 1% difference in interest rates between 15 yr and 30 yr , which one is better option if investment property. Whatever be the rates, be it 3.15/3.5 or 4.15/4.5 or something else

We have been looking at this property when interest rates were 4% for 30 yr just few days back. please don't start back again saying where do you see 4% rates, please check rates on any mortgage comparison websites.

Thanks to thelopez2 and pfhtex for your response. That helps

Falconheadwest - can you please not respond to my thread. I don't find any of your responses useful/answers my original question

Thanks!
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Old 03-03-2014, 10:52 AM
 
Location: Southern California
4,453 posts, read 6,366,702 times
Reputation: 2231
Interest rates have dropped ask your lender if they will lower the interest rate.

What are you hoping is the outcome of your investment, sell it in the future and have appreciation income or rental income when it is all paid off?
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Old 03-03-2014, 11:21 AM
 
Location: North Idaho
30,312 posts, read 41,478,786 times
Reputation: 69168
Personally, I have a huge preference for lower interest rates.

However, tenants have been known to be unreliable, so be certain that you can pay the mortgage amount with no input from the tenant. At some time during that 15 or 30 years, some tenant is going to either stiff you for the rent or else be so late that their rent isn't there to pay the mortgage.

My experience with advertised mortgage rates is that they aren't really available.
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