Financing in Lynn>Question Details

Sbouboulis, Home Buyer in Lynn, MA

Buying property in Lynn, MA as an investement. I have 20-25/% down payment.Is bank or morgage co better way to apply for morgage.?

Asked by Sbouboulis, Lynn, MA Sat Oct 17, 2009

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Good Evening Sbouboulis...

While it is definitely true that investment properties will carry a higher interest rate, I don't agree that a mortgage company is always your best bet. I was born and raised in Lynn so am very familiar with the city and the local banks. Give Eastern Bank a call and see if they're able to assist you. They're a bank that is based in Lynn and invest in the community. As always, you should shop around and find the best deal you can. Never assume that one is better than the other. I don't work for a lender or a broker so have no dog in this fight. I simply believe that being an informed consumer and shopping for a mortgage is always your best course of action. Best of luck with your purchase.

John
0 votes Thank Flag Link Tue Jan 5, 2010
Hello Sbouboulis- I'm both a mortgage officer and a RE investor personally. I can tell you that going down to a bank branch will not be the best deal for you. You need someone to price out the best deal, and not only that- some banks will not even touch investment properties these days.
I'm familiar with Lynn as well- used to live there.
If you'd like some further help, please let me know. Thanks, and good luck,

Ken L.
0 votes Thank Flag Link Mon Oct 19, 2009
It depends.

This is a type of transaction where pricing will vary a lot. Without getting into full details, there is a fee cost for investment properties.

First, let me suggest you put at least 25% down. You can do 20%, but the Fannie Mae hit for putting 20% down vs. 25% is 1.25%. You'll be giving up 1/4 of the down payment you saved in the form of a fee to the bank...not worth it.

Second, the mortgage company who will give you the best pricing for an investment property will likely be the same types of companies that can offer little to no closing costs, as they follow the same principal. I don't want to fill my answer with a bunch of jargon, but there's no question that a company who typically offers no closing cost loans will probably have better investment property loans.

Remember that all of these loans are probably sold to Fannie Mae, so the fee structures I mentioned above are for a mortgage company or a bank. No difference.
0 votes Thank Flag Link Sat Oct 17, 2009
Both are fine as long as mortgage company is a lender. Also both are the same (they sell their loans on the secondary market) unless you want the mortage held in-house and the bank offers that. You should apply where you feel th the most comfortable and are getting a competitive rate and program. Make sure you feel confident they understand your needs and understand the process and program you are applying for.
0 votes Thank Flag Link Sat Oct 17, 2009
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