Is my rate too high?

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My bank is offering a FHA Streamline with a percentage rate of 4.75, The curerntly FHA rate is 3.75. Why the difference? Is this considered a good rate? This is for a non-owner occupied 2 family house that currently has a FHA loan. The house is in East Orange, NJ.


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Rates are based on borrower and property characteristics. A Single Family Residence vs. a Condo will have different pricing. Also, FICO scores and LTV have an impact. The best thing to do is to get a couple of quotes. I say try your local bank, then a couple of mortgage brokers. You should quickly be able to see how the offers stack-up. I’d focus on the rate + fees among your offers. You’d be wise to really consider the loan with the lowest rate and lowest fees.

Finally, I know I try to help my borrowers with costs. Higher rates usually involve more credits to the borrower (for closing costs, MIP, etc.)

In short, get another couple of quotes.

Answered 3 months ago

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Yeah, these are pretty easy to price out, glad to take a look if you like. Would need to know credit scores, date last loan was taken out, loan size…….the fact that it is a 2 unit, investment property will certainly influence your rate. If your existing loan was endorsed by FHA before 5/31/2009 (so closed by early April), you’ll also be eligible for reduced costs from HUD on both the monthly and upfront MIP charges. Make sure to ask whoever you do it through what your CURRENT MIP charges are, and what the new monthly cost will be. MIP costs went up several times over the past few years and it’s critical to be sure any increase in your MIP is accounted as it will directly impact the money you save monthly. I write loans nationally, hope this helps!

Answered 3 months ago
Ted Rood
1257 6

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