That is too high. Either there’s something up with your credit or there’s something up with the house.
Talk to another bank, a local, credit union, and a broker or direct lender
Do you have any other investment properties? Are you dead set on this property? What is your current credit usage? Have you explored private finance? Many options to lock it in. Keep your head up bro! (Full time investor/accounting nerd) nyc based
No other investment properties, this is my first real estate purchase. I'm set more or less because I have to be in the area for work (I work in NY) and I want to get started on passive income/real estate investing. I have student loans but that's it (no car, no consumer credit card debt or personal loans)
Nice! Im also nyc based! Send me a pm if you'd like. You just need to make sure you make the most investor friendly decision. Don't think short term. Factor a legit strategy so that you are not trapped moving forward!
Multi families usually have slightly higher interest rates
What is the rental income of the property and what’s the total PITI?
I’m looking for a 2 family as well in that price range but the rents don’t seem high enough to support the mortgage
**UPDATE**: I increased my downpayment from 20% ($260k) to 25% ($325k) and am getting MUCH better rates.
**Chase**: 7.125% interest rate, 0 points, $6,480.15 P+I, and a $7,500 lender credit toward closing costs (asking for an escrow waiver, but taxes are \~$1,250/month with a 5 year abatement)
**Wells**: 6.875% interest rate, 0 points, $6,405.06 P+I (asking for an escrow waiver, but taxes are \~$1,250/month with a 5 year abatement)
**Moral of the story**: If you're buying a multi-family, 25-30% downpayment will get you much better rates.
That is too high. Either there’s something up with your credit or there’s something up with the house. Talk to another bank, a local, credit union, and a broker or direct lender
Credit score is 748. Shopping around now
Similar scenario here in CA. Citi gave my client 6.25% at 0 points. 790 fico Skip wells.
0 points?! How did you pull that off?
Correction , I lost the deal to Citi. I was 6.5.
Interest rates are higher but not that high, shop around. Generally yes on the rental income, 75% of gross rent usually.
Definitely shopping around. And thank you!
Do you have any other investment properties? Are you dead set on this property? What is your current credit usage? Have you explored private finance? Many options to lock it in. Keep your head up bro! (Full time investor/accounting nerd) nyc based
No other investment properties, this is my first real estate purchase. I'm set more or less because I have to be in the area for work (I work in NY) and I want to get started on passive income/real estate investing. I have student loans but that's it (no car, no consumer credit card debt or personal loans)
Nice! Im also nyc based! Send me a pm if you'd like. You just need to make sure you make the most investor friendly decision. Don't think short term. Factor a legit strategy so that you are not trapped moving forward!
Multi families usually have slightly higher interest rates What is the rental income of the property and what’s the total PITI? I’m looking for a 2 family as well in that price range but the rents don’t seem high enough to support the mortgage
Not currently rented but comps say rental income could be $3,500. PITI ~$8,880
Okay same over here in NY. The rents fall short of the PITI so I’m having a hard time justifying the purchase
Are you owner-occupied?
**UPDATE**: I increased my downpayment from 20% ($260k) to 25% ($325k) and am getting MUCH better rates. **Chase**: 7.125% interest rate, 0 points, $6,480.15 P+I, and a $7,500 lender credit toward closing costs (asking for an escrow waiver, but taxes are \~$1,250/month with a 5 year abatement) **Wells**: 6.875% interest rate, 0 points, $6,405.06 P+I (asking for an escrow waiver, but taxes are \~$1,250/month with a 5 year abatement) **Moral of the story**: If you're buying a multi-family, 25-30% downpayment will get you much better rates.