I just got a quote for a mortgage on an investment property through Century 21. The property is owned by Fannie Mae and they accept 10% down on the properties through their lenders.
They want me to pay 4.6 points and 8.1% Interest, seems crazy to me. Anybody else use the HomePath mortage? I could really use somebody’s example to compare.
This will be the 3rd house I have bought and this just seems extremely high. This house is only $45,000 BTW
I have a 697 Median FICO score and plenty of income to qualify for the property. Also, I don’t see anything in Yahoo! Finance about a 10% Down, 15-Year mortgage for investment properties.
Asked by:Josh
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Ridiculously high unless you are a subprime borrower. Part of the problem is that this is not an owner occupied home, and the price is so low that it will be hard to resell this loan in the conforming market.
If you have equity in another property, why not take out a home equity line of credit against that property and pay cash for this one with the proceeds of that loan.
Or, take a look at your credit report at and see if there is something reported there that is bad and might be a mistake.
I personnally prefer credit unions for loans – had great luck with the DVA Federal Credit union in DC on a HELOC – 3.9%. Pentagon Federal Credit Union also has some good deals.
Shop around – you can do better! Go to yahoo financial and find “home mortgage rates” on the right side. Go for 10% down (4500) and 5% fixed on a 15 year (if you can do it) Unless your credit is in the scrapper you’ll have no problems.