I am looking to refinance a single family rental property. What is a good interest rate and do you recommend a reliable mortgage company?
First and second mortgage total $45,000, and market value around $85,000. My credit score is 685.
Interest rates will vary between lenders for a variety of reasons, your credit score being just one of them. A 30yr fixed mortgage on an investment, single family proeprty could be anywhere between 4.00% and 4.5% right now. As far as a reputable mortgage company, my best advice would be to speak to friends, colleagues, and/or family. There are hundreds of lenders out there from big banks to small brokerages to online lenders. I have always found that the best way to go is through referral. You should then check out the individual loan officer as well perhaps starting at his or her LinkedIn page for information & recommendations. Hope that helps! | 03.03.15 @ 19:25
Thanks for the post ...I would recommend contacting the lenders that have the present loans on the rental for options ...I would also obtain some referrals from your co-workers / friends / neighbors for places to contact to get quotes and options. Thanks and all the best! | 03.03.15 @ 21:24
The rate on an investment property will be based on the equity, the credit scores of the borrower(s), loan purpose (rate/term or cash out) and the type of property (home versus condo). Loans with 30% equity are priced better than ones with 25%. 760 borrowers get better rates than 680 score borrowers. In your case, the equity is there, scores are somewhat marginal. You'll also likely have an adjustment for the smaller loan size (meaning you'll have an additional cost added to the loan). In your scenario, I'd expect your loan to price out about .5% to the rate higher than a "perfect" owner occupied loan, so roughly 4.5%, based on the info you gave and current rate markets. | 05.06.15 @ 00:42