Morgage Rates 1 Family vs 2 Family
Does it make sense that a two family home will have a higher mortgage rate than a one family? That’s what my refinancing person in Chase is telling me after apparently pricing the refi for one family by mistake.
Does it make sense that a two family home will have a higher mortgage rate than a one family? That’s what my refinancing person in Chase is telling me after apparently pricing the refi for one family by mistake.
2 family homes have a 1% adjustment to the rate. But that doesnt mean you still couldnt get the same rate as a 1 family. The bank is always trying to make more money if possible.
Ive been a mortgage broker for 10 yrs. I can get you the same deal with a 2 family as a 1 family.
Vincent
vsarrica@equitysource.com
2 fam is considered more risky. What if you have a tenant that stops paying? Multi family properties have a higher default rate. This is a Fannie Mae and Freddie Mac guideline. The cost of the adjustment is 1 point or 1% of the loan amount. You can elect to pay it or accept a higher rate which will be bntwn .25 – .375% higher. More likely .25pt higher but never .125%
Wells and HSBC are horrible both in rates and service. Citi is better or you could check with me, I’m crushing them all, 🙂
-Adam Dahill
adahill@wcslending.com
yes, true. They are all criminals anyway, i do mean that literally. yes, shop around.
Yes, it is true, but the difference is fairly small: between 1/8 and 1/4 of a point.
yes 2 fam is more. reality, more 2 fams default than 1’s. Not that that is the reason behind the defaults, but that is where we are with genius consumer banking.
If they could, they would probably run the numbers on people who wear plaid shirts vs. plain.
Check TD, Wells.
Yup. But shop around anyway. HSBC and Wells Fargo have pretty amazing rates right now.
It doesn’t make any sense, but it’s true. I would have thought that the extra income from a rental unit would be a plus. Who knows how these rules are set up.