I have been pre-approved on a duplex purchase price of 129,000. I live in Washington State and the duplex is located in Moses Lake Washington. My mid score is 703 and my wife’s is 733. I am hoping somebody out here may be able to help me get a little better rate but, maybe not. The loan I have is the first 80% 30 year on a 5/1 ARM at 6.625% and the second 20% is a 15 year fixed at 13.125%. At these rates the duplex will have a slight positive cash flow but I would like to have a little more. If any lenders have a better option for me please let me know.
You have pretty decent rates now. It probably wouldnt been too wise to refinance unless youre looking to get cash out. We do have a program that will get you a lower rate but it is fully adjustable.
Thanks…I must of been half asleep reading it the first time around. Since its a purchase maybe he can check out the MTA loan I think its still in the low 4s…
He did not say if he is going stated or no doc on this loan. If that is the case a 2 unit, stated, noo, 100 CLTV second lien at 13% might not be that far out of the ball park. Also, lowering the rate on a second lien of that size is not going to increase the cash flow on the property by much at all. Maybe enough to get an extra starbucks latte once a week but that is about it. ;D
HE can’t get 100% on an MTA loan if it is NOO. If it were OO then it is a different story.
With mid ficos in the 700’s that second mortgage is very high. It sounds like the lender they are using is Lehman Brothers. They always come back with the 13% +.