[quote=earlyretirement]Rather than start a new thread, I thought I’d “piggyback” (no pun intended) on this thread.
So I finally got back in the market and bought my primary house last year. Now I’m thinking of picking up an investment property.
I haven’t bought an investment property in the USA for a LONG time. Just reaching out to lenders today it seems like buying an investment property that is a condo with 25% down payment is 3.875% for 30 year fixed or 3.25% for 15 year fixed.
Also, he said if I wanted to refinance my house and pull equity out of it, it would be 3.5%.
Does that sound about right to you experts? The broker said condos are automatically around 0.75% higher. Which sounded high to me, but admittedly it’s been a long long time since I bought an investment property in the USA.
Has anyone bought an investment property recently in SD? What kind of rates were you quoted out of curiosity?[/quote]
Yup, that sounds about right. Actually, I’m doing the reverse. I bought a cheap condo for cash, and now trying to do a cash out refi…
I’m hitting 3 issues
1. Cash out refi is limited to 70-75% (not really that big a deal)
2. Rate is about .75% higher, and I can’t find a decent no-cost option (even at absolute mortgage..My lender I did a refi with doesn’t finance investment properties.
3. Some places won’t make a loan less than $100k.
My broker friend recommended that the cheapest option for me would be to cash-out refi my primary… But I’m trying to avoid that because I want my primary to be free and clear sooner versus later…
I tapped my 401k with a loan @ 4% since I end up paying it back to myself, and since I wanted to reduce my 401k stock holdings at the time.
I have an untapped heloc @ 3% on my primary, that I can pull if I need to…Not sure if I want to go that route though. I mainly want to free up as much borrowed cash as possible for a hopefully pending purchase that will go through, as well as possibly more.
I wish the banks would relax the lending standards for rental props for people like me, but they’re still kinda strict about it.
