Posted on: 06th Jan, 2010 06:10 pm
I am currently going through a deal for a two units (separate entrance, utilities) property, and I will be residing in one of them as my primary resident. There are 3 leaders I am working with to get a loan and each tell me different thing after I told them that it will be an owner occupied two unit.
The broker from my local bank says the rate is same as single family but there is 1 points in fee
Mortgage Broker A simply quoted a much higher rate (this broker is the most competitive when he quoted for the single family)
Mortgage broker B say the rate is same as single family.
I try to get some reference online and cannot see to locate any.
Any help will be appreciated.
Thanks in advanced.
Chris
The broker from my local bank says the rate is same as single family but there is 1 points in fee
Mortgage Broker A simply quoted a much higher rate (this broker is the most competitive when he quoted for the single family)
Mortgage broker B say the rate is same as single family.
I try to get some reference online and cannot see to locate any.
Any help will be appreciated.
Thanks in advanced.
Chris
Hi cw,
You should go for a mortgage which you'll be able to afford. You should go for the lender who is offering better terms and conditions to pay off the loan. If you're not satisfied with the offers of these 3 lenders, then you should contact other lenders and check out what they have to say in this regard. You can even seek a no obligation free mortgage consultation from the lenders of this community and check out what type of rates and terms you would receive.
Thanks
You should go for a mortgage which you'll be able to afford. You should go for the lender who is offering better terms and conditions to pay off the loan. If you're not satisfied with the offers of these 3 lenders, then you should contact other lenders and check out what they have to say in this regard. You can even seek a no obligation free mortgage consultation from the lenders of this community and check out what type of rates and terms you would receive.
Thanks
Go with who's the most knowledgable and what you can afford (closing cost wise and monthly). You're the one paying the mortgage. If you have all the details, you can shop further but, don't run your credit and don't get yourself crazy. We all have round about the same rates. You want to make sure you're receiving a good deal and the customer service is there.
The two family needs to be in an authorized two family zone.
The rate and pricing can vary depending upon where the money is coming from---Agency (Fannie Mae or Freddie Mac (both taken over by FHFA)) or from a portfolio lender.
Both Fannie Mae and Freddie Mac have a Loan Level Pricing Adjustment (LLPA) for two family properties of 1.00% (which is same as one point, or, one per cent of the mortgage amount. That 1.00% can be paid as a point, in which case the rate would be the same as a single family but the points would be 1.00 higher, or, the rate can be raised to cover the point and you then have a zero point loan but the rate is higher.
If the money is coming from a portfolio lender (not Fannie Mae or Freddie Mac), there could be absolutely no difference between a two family and a single family. The portfolio lenders I work with have no difference.
An FHA mortgage has no difference between one and two family rates.
The rate and pricing can vary depending upon where the money is coming from---Agency (Fannie Mae or Freddie Mac (both taken over by FHFA)) or from a portfolio lender.
Both Fannie Mae and Freddie Mac have a Loan Level Pricing Adjustment (LLPA) for two family properties of 1.00% (which is same as one point, or, one per cent of the mortgage amount. That 1.00% can be paid as a point, in which case the rate would be the same as a single family but the points would be 1.00 higher, or, the rate can be raised to cover the point and you then have a zero point loan but the rate is higher.
If the money is coming from a portfolio lender (not Fannie Mae or Freddie Mac), there could be absolutely no difference between a two family and a single family. The portfolio lenders I work with have no difference.
An FHA mortgage has no difference between one and two family rates.
