Rate difference on 80% LTV VS 75% LTV

Financing, Hard Money Lenders, Private Money
1

I know FNMA instituted a scale for interest rates corresponding to the LTV. Can anyone tell me what the rate would be on a 75% LTV and an 80% LTV, investor loan, NOO, cash out refi. Just trying to figure out if 80% makes sense anymore.

Thanks.

2

Troy,

It depends on your credit score more than anything. However the cost for the LTV goes from 1.75 points to 3 points as far as the cost to go above 75%. Meaning out of the extra 5% you would be getting in cash; 1.25 points will come right of the top. So instead of 80% you would net 78.75%. Depending on the customer’s credit score it could cost them another .5 points - 3 points. So I guess to answer your question…No it does not make sense unless you have a 740 plus credit score.