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.
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,
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.