Financing in Corry>Question Details

Eurythmy, Other/Just Looking in Corry, PA

My parents own a house and a 4-plex. Their interest rate is 11%. They said it was because of the # of units they own. Isn't that really high?

Asked by Eurythmy, Corry, PA Thu Oct 14, 2010

They live in Corry, PA. I don't think their credit is that great, and their property taxes also are not included in their mortgage. Just seems like that interest rate is aw\fully high.

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It does seem high, but they are in a different league once you hit 5 units on one property. Contacting a lender to see if something can be done is a good idea.
1 vote Thank Flag Link Fri Oct 15, 2010
The two buildings are on the same deed, but they live in the fourplex. I was thinking that one of these two ideas might work: 1) tear out a wall of one of the apts. to make it into 3 instead of 4 apartments or 2) Split the deed. Are either of these good ideas?
1 vote Thank Flag Link Fri Oct 15, 2010
You bet it's might be time for them to consider refinancing and looking at programs and rates that will meet their needs.

It's hard to believe they couldn't do better than 11%. .....even with bad credit!

Good luck,

1 vote Thank Flag Link Fri Oct 15, 2010

It is high for current interest rates. But is deponds on what type of loan they took out at the time. I strongly have them contact other lenders. I can give your parents several to choose from for them to shop arround in the local area.
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0 votes Thank Flag Link Sun Oct 16, 2011
That's not high if they have a commercial loan on it.
0 votes Thank Flag Link Fri Oct 15, 2010
Is the house and the 4-plex located on the same lot? If so, it is considered a 5 unit property to a lender, and is not eligible for typical conventional or FHA financing.
0 votes Thank Flag Link Fri Oct 15, 2010
If the 4 plex is their primary residence they have more flexibility on their loan options than if the property is strictly an investment property. Based on the high interest rate and Pennsylvania's very strict anti-predatory lending laws I would assume that the property is an investment property. If I am incorrect on this assumption that is a good thing for your parents. I am a Pennsylvania licensed Loan Officer. Feel free to call me at (866) 552-5912 to discuss your parents loan options.
0 votes Thank Flag Link Fri Oct 15, 2010
Yes it seems high. Start looking around with some lenders. Search on this site and you should find someone to help you.
0 votes Thank Flag Link Thu Oct 14, 2010
See if their loan is owned by Fannie Mae or Freddie Mac. A HARP refinance would be a great way for them to lower the rate.
0 votes Thank Flag Link Thu Oct 14, 2010
Hi E. It does sound high to me, too. Why not start shopping the rate with a couple of mortgage brokers here on Trulia. I'm sure somebody will answer this question and offer you some options. 11% sounds to me like a rate from 10+ years ago.

How much equity do they have in the property? What's their loan balance? How many years left? Maybe you can do the legwork for them and get them 3 quotes for a refi. This will save them a TON of money. Smart move.


Scott Miller, Realty Associates, Boca Raton, FL
0 votes Thank Flag Link Thu Oct 14, 2010
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