Author Topic: Best investment mortgage rate?  (Read 1543 times)

schmiecs

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Best investment mortgage rate?
« on: July 07, 2012, 08:54:34 AM »
I currently have an investment mortgage for a 30 year term at 6.5%. I want to refi into something better. I'm seeing 2.875 with 2 points at Newport Federal. Anyone know them? Is there a better option out there?

Another Reader

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Re: Best investment mortgage rate?
« Reply #1 on: July 07, 2012, 10:16:38 AM »
It looks like you are looking at Newport Federal Savings Bank, which operates in Rhode Island and Connecticut.  They are offering a 15 year fixed rate loan for a loan to value ratio up to 70 percent on investment properties.  The website does not say if this rate is just for purchases or refi's.  I assume loans are limited to the states where they operate branches.  However, they want 2 points plus closing costs to do this loan.

The interest rate is good, but you are paying 2 points to get this rate for 15 years.  I am not familiar with the loan market in your area, but I can get the same rate with only one point through a credit union in Arizona.  I would shop around and I would also try to negotiate the points down if possible.