Mortgage on investment property and APR

[Anonymous]

Hello everyone.

I thank you all for helping me come back from the abyss of bad credit. I really have a great foundation and understanding to move forward now and have been researching the option of buying a second home for investment purposes. A little bit about my situation:
Fico 8
EQ 761
TU 768
EX 757
I own my home and car outright
Have 2000 in cc debt (which is my only debt)

Question: I was recently preapproved for a mortgage for a duplex in PA at a rate of 5.375% is that average? Does that seem ok? Keep in mind it would not be my primary residence. All of this is new to me so I have no clue. I have found a lot of lenders who are telling me to simply refinance my primary home and buy a place with those funds. Any assistance would be appreciated

Thanx! 

[Anonymous]

I just obtained my Mortgage scores, they are as follows:

EQ 5-771
EX 2-747
TU 4-752
I don't know if this helps, thanx! 🤓

[kc0039]

Keep in mind, we disclose higher rates just in case rates do go higher.

[Anonymous]

Ok, I was really nervous and worried thinking no one wants to give me a mortgage. I don't think my scores are that bad. Ok, so I won't worry. (Actually I still will.... I'm a Virgo! 😉) Thanx, kc!!!

[kc0039]

You have great credit scores, but it's an investment property. The interest rates on those are generally higher. Are you putting 20% down or 25% down?

[Anonymous]

I am putting 25% down. I have been a ball of nerves. If I end up asking you other questions, I apologize in advance! 😅Thanx so much!

[H-B]

What is purchase price?  Sometime if the loan amount is smaller the interest rate is higher and its investment. 

[kc0039]

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@Anonymous wrote:
I am putting 25% down. I have been a ball of nerves. If I end up asking you other questions, I apologize in advance! 😅Thanx so much!

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Okay great. Feel free to reach out to us if you have any more questions. A lot of us here are happy to answer any questions.

[Anonymous]

Ah! Maybe that's why the rate seems high to me. The purchase price is low.... it's only $65,000. Thanks, H-B, that actually makes sense. I've had people trying to make me go higher. But I can see myself going too far out of my comfort zone. Not too much of a risk taker and it that price, i wouldn't have to feel constantly worried about it being rented out....if God forbid the tenants left.

[Anonymous]

Thanks to you both..... I really appreciate it!! 😊