Comparing Loan Rates For Rental And Primary Residences
While buying an investment property is similar to the process of an owner-occupied or second home mortgage, there are differences.
Unlike traditional home purchases, investment property loans tend to have higher mortgage rates, often ranging between .25 and .75 percent. Where the borrower falls in that range depends on the down payment, with those paying more upfront receiving less of an increase.
The minimum down payment for an investment property loan is 15 to 20 percent, but the lowest rates are often not available until you raise it to at least 30 percent.
Suntrust Phone Number & Additional Details
If youve recently tried to contact SunTrust Bank, you may have come across a message directing you to use a number based helpline number.
SunTrust Bank phone number is one matter that you cant ignore. Now its time to find out why.
If you have earned your MBA in finance, then you might already know a thing or two about SunTrust. If not, the information that you need is very easy to find. For a start, if you decide to use the information above to call SunTrust Bank customer service, you will be talking to a representative that is both well informed and able to help you. You may need to know more though.
Many of the phone helplines are different than what you expect to see. In fact, most of the time the customer service helplines have a longer list of information before you can get your call through. Because of this, you can find yourself wondering why you ever called in the first place. If you use the online help desk, you will know exactly
What Mortgage Programs Does Suntrust Refinance Offer
SunTrust Bank Mortgage Refinance offers the following mortgage types:
- Conventional mortgages: This includes any mortgage that is not insured or guaranteed by the federal government.
- FHA: Mortgages insured by the FHA, which usually have less stringent eligibility requirements, but borrowers must pay a mortgage insurance premium. Co-applicants are allowed and you can qualify for a down payment as low as 3%.
- VA: A zero down payment mortgage or a refinance of up to 120% of the home’s value for American military members, veterans, and their spouses.
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Suntrust Mortgage Review For 2022
SunTrust stresses the personal aspects of its mortgage offering. We want to make absolutely sure you get the mortgage thats right for you, the company says. So we talk to you about itface-to-face at a branch and over the phone. This level of engagement will appeal to many first-time buyers and others who appreciate traditional relationships in mortgage matters.
Even better, SunTrust has a range of low- and no-down payment mortgage options. Along with its face-to-face customer service, this could make SunTrust especially attractive to new home buyers.
But it may be less of a draw for those who prefer the more modern, Rocket Mortgage style of mortgage buying which reduces personal interactions down to almost zero. In theory, you can use SunTrusts online application process to achieve a similar type of engagement. But the app does seem geared toward encouraging calls and meetings.
How Does A Jumbo Home Loan Work
Like conventional mortgages, jumbo loans come in a variety of terms and repayment schedules, and they can be fixed-rate or adjustable-rate loans. At this time, Rocket Mortgage is offering 15- and 30-year fixed or 7-year adjustable-rate jumbo loans.
However, jumbo loans work differently than conventional mortgages. These loans have stricter requirements than other types of mortgages, and youll have to meet very specific property type, down payment, credit score and debt-to-income ratio requirements to get one.
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What Your Monthly Mortgage Payments Could Be With Truist
Accurately predicting what your monthly mortgage payments could look like is easier said than done. Thats because there are so many personal factors that go into how your loan is structured, including your credit score, the value of your new home and the ratio of your down payment versus the remaining balance.
As a way to standardize these projections and provide an example, below its been assumed that the overall value of the home for the conforming mortgages is $250,000. That would make your down payment $50,000 and your mortgage $200,000. For the jumbo loan, the home value is $750,000 with a down payment of $150,000. Heres a detailed analysis of four of Truist’s most popular loans:
| These payment calculations do not include homeowners insurance, property taxes or closing costs. |
| Mortgage |
What To Do If You Get Turned Down
While Truist provides affordable loan options, itâs still possible to have your application denied. If this happens, ask the lender what led to the denial to see what you might need to work on, such as building your credit or paying down debt.
You could also consider applying with a co-signer or co-borrower to increase your approval chances. However, keep in mind that this person would share responsibility for the loan, which is a lot to ask of someoneâespecially if they wonât be living in the home. You can use our mortgage calculator to see what you can reasonably afford on your own.
Also make sure to shop around and compare your options from as many mortgage lenders as possible. This can help you figure out which lenders you might qualify with as well as lock in a good rate. Note that submitting several mortgage applications within 45 days will have the same impact on your credit as submitting a single application, according to the Consumer Financial Protection Bureau .
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What Could Be Improved
Soft pre-approval
At Truist, mortgage pre-approval is based on nonverified information and is not a commitment to lend. It might be more appropriate to call this a prequalification instead of a pre-approval. Since the lender isn’t checking your information, you can’t be certain that you’ll be approved, or for how much.
Limited rate tool
Truist only shows the lowest possible mortgage interest rate, reserved for applicants with excellent credit. It would be nice to see how the rate changes for people with good or average credit.
What Are The Conforming Loan Limits
Fannie and Freddie set limits called conforming loan limits on how high your mortgage can be. Conforming loan limits vary by state and market. In 2022, you can only borrow up to $647,200 for a single-family unit in most parts of the U.S.
However, conforming loan limits go as high as $970,800 in Alaska and Hawaii, where the median price of a home is far above the national average. In other high-cost areas, loan limits are set on a county-by-county basis.
To find the conforming limits where youre looking to buy a home, check this FHFA map.
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Investment Property Rates Are Above Standard Rates
If you buy an investment property at the right price and finance it correctly, it can create cash flow for you almost immediately.
But getting an ultra-cheap mortgage rate on a rental or investment property is tougher than for a primary residence. Thats because lenders charge more for non-owner occupied transactions meaning a property you dont plan to live in.
Despite higher rates, investing in real estate is often a good idea long-term. Heres how much you can expect to pay now to finance that future cash flow.
In this article
Truist Mortgage Review 2022
Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.
When BB& T and SunTrust merged in 2019, they formed Truist, a far-reaching financial services company based in Charlotte, N.C. A top 10 commercial bank in the U.S., Truist serves approximately 15 million households with branches in 17 states and the District of Columbia. Truist offers a wide variety of mortgage services, including refinancing, home equity lines of credit and special mortgages for doctors and dentists. Truist is a licensed mortgage lender in more than 40 states and the District of Columbia.
Note: SunTrust and BB& T customers accounts will be transferred to Truist in February 2022.
WHO IS THIS LENDER FOR?
- First-time homebuyers
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Which Loans Are Available For Investment Properties
Residential investment property mortgages differ from primary home mortgages in four key areas:
Down payment: Investment property mortgages usually require a larger down payment
Interest rate: Investment property mortgages usually have higher rates
Loan underwriting: Residential investment property mortgages may be underwritten differently than properties that are owner-occupied
Property size: At TD Bank, residential mortgages for investment properties are for buildings with 1-4 units. If you’re interested in a building that is mixed-use, commercial or more than 5 units, you may need to consider commercial financing for your mortgage needs
You can learn more about your best loan options and get a realistic price range for your search when you talk to your TD Bank loan officer to get prequalified.
- To get prequalified, you will need to provide your basic debt, income and asset information your loan officer will pull a credit report
Will Investment Property Interest Rates Drop In 2020
Average mortgage rates fluctuate daily and are influenced by economic trends including the inflation rate, the job market and the overall rate of economic growth. Unpredictable events, from natural disasters to election outcomes, can impact all of those factors. See NerdWallets mortgage interest rates forecast to get our current take.
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Make A Bigger Down Payment
The surest way to get a lower interest rate on your investment property is to make a bigger down payment. Much of the added cost goes away if you can put at least 20% down.
It might be worth borrowing against the equity in your current home to increase your rentals down payment. You can also buy a cheaper house, or find a foreclosure you can buy at below market value.
You could even consider if this is an exceptional investment borrowing against your 401.
Maximum Debt To Income Ratio
In addition to your credit score and income, mortgage lenders also consider your DTI ratio. This is the loan amount you owe in monthly debt payments compared to your income.
Although Truist does not disclose the maximum acceptable DTI ratio, in general you should aim for a DTI ratio of no more than 50% to qualify for a traditional mortgage although there are lenders who require ratios lower than this.
FAQs
Customers can apply for a mortgage in person, online, by phone, or via the SunTrust mobile app. SunTrust offers a wide range of mortgage options to those who apply, so many borrowers will be able to find what they need. Rates appear to be slightly higher than average, but mortgage rate vary greatly depending on the customer.
When you make an extra or larger-than-required payment, you can designate that the extra funds be applied to principal. Because interest is calculated against the principal balance, paying down the principal faster on a fixed-rate loan lowers the amount of interest youll pay.
Many financial institutions are required by the Home Mortgage Disclosure Act data to keep, report, and publicly disclose loan-level mortgage information.
Truist isnt entirely forthcoming about the fees it charges on its loans. According to a company spokesperson, borrowers should expect to pay origination fees and that they do not assess prepayment penalties however, you should check with the lender to see exactly what you might be charged.
Timelines for Approval and Closing
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Working With Suntrust Mortgage
SunTrust may be geared to personal interactions, but it has a welcoming and useful online presence. Its website provides plenty of information. And you can apply online and upload documents securely there. Helpfully, theres a Spanish-language version, too.
In addition, theres an app, called the SunTrust SmartGUIDE. This allows you to make applications using mobile devices. And it lets you save your application at any point and then continue with it later.
Alternative Investment Property Financing
Your seller may be happy to have an income stream from you without the hassles of being a landlord. Seller financing can be cheaper than banks or brokers.
The seller may be more interested in unloading the property than in profiting from your mortgage. But make sure you get the home appraised and inspected before buying.
Alternatively, there are lenders that specialize in financing commercial residential property from homes to apartment buildings.
As long as the property income is sufficient to cover the mortgage and other expenses, they may finance you for less.
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How Does A Mortgage Work
A mortgage is the binding agreement of a loan to buy a home. The mortgage is between the lender and the homeowner. In order to own the home, the borrower agrees to a monthly payment over the payment period agreed upon. Once the homeowner pays the mortgage in full the lender will grant deed or ownership.
Your monthly mortgage payment includes a percentage of your loan principal, interest, property taxes and insurance. Keep in mind, your mortgage will include your annual percentage rate to include a full breakdown of your lender fees and other costs included in your payments.
Most mortgage loans last between 10, 15 or 30 years and are either fixed-rate or adjustable-rate. If you choose a fixed-rate mortgage, your interest rate will stay the same throughout your loan. But if your mortgage is adjustable, your mortgages interest rate will depend on the market each year, meaning that your monthly payment could vary.
The consequences of not repaying your mortgage loan can be pretty stiff. If a homeowner doesnt make payments on their mortgage, they could face late fees or other credit penalties. The mortgage also gives the lender the right to take possession of and sell the property to someone else, and the homeowner can face other charges from the lender. All in all, mortgages are a great, affordable option for purchasing a home without the worry of paying in full upfront.
How To Attain Lower Investment Property Loan Rates
Before applying for a new loan or refinancing, there are several ways to improve your odds of landing lower mortgage rates. Following are potential steps to take toward securing the lowest loan rates possible:
- Improve your credit score: Investment property mortgages mandate a minimum of a 640 credit score. Alas, scores on the lower end will not deliver the most competitive rates. For better results, aim for your credit score to be 700 or higher before applying.
- Increase your cash reserves: Rental property lenders require cash reserves equal to at least six months’ worth of mortgage payments, though having a year’s worth or more is beneficial. Additional cash demonstrates that you can still make payments even during a vacancy.
- Put down a larger down payment: By contributing a higher down payment than the minimum requirement, investors borrow less money, meaning lenders take on less risk. Consider paying more than the mandated deposit amount, even up to 30 percent, for ideal long-term interest rates.
- Reduce your debt-to-income ratio: The general guideline is for borrowers to keep their DTI ratio below 43 percent. However, you need even more budgeting room due to the costs associated with owning a rental property. While 75% of your anticipated rental income may be taken into account, lowering the DTI can do the same for the loan rates.
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Truist : Loan Types And Products
Truist doesnt offer reverse mortgages or renovations loans, though most borrowers will find what theyre looking for on the lenders menu. Heres what Truist Bank offers right now:
Construction-to-permanent loans allow homebuyers to finance the costs of building a new home. After the home is constructed, the loan converts into a traditional 15- or 30-year mortgage. This type of loan has become popular as home inventory is shrinking but housing demand is increasing.
Truist also gives homebuyers an option between fixed- and adjustable-rate mortgages. With a fixed-rate mortgage, your mortgage rate never changes. This could be a good option if you find a low rate and you prefer predictable payments. An ARM offers a fixed rate only for a certain amount of time. Then, based on market conditions, the rate may go up or down at specified intervals for the rest of the loan term. Truist offers ARMs with terms of 5/6, 7/6, or 10/6. So with a 5/6 ARM, for instance, the rate is fixed for the first five years then adjusts every six months. Truists ARMs are subject to rate caps per adjustment as well as life of loan.
And if you have an existing mortgage, you can swap it out with a rate-and-term refinance, cash out refinance, FHA streamline refinance, VA cash-out refinance, VA IRRRL refinance, or USDA streamline refinance.
Home Equity Loans Guide
Home equity loans and home equity lines of credit let homeowners borrow money by using their home equity as collateral.
Along with home improvement loans and refinancing, these types of loans are some of the most popular ways to finance home renovations. Both home equity loans and HELOCs may be tax-deductible when funds are used for home renovations.
Read our comprehensive guide to learn more about how to get a home equity loan, the different options available, how they work and key factors to consider when choosing a home equity loan.
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Suntrust Doctor Loan Program
Getting Approved
Knowing that you can get a doctor loan for healthcare financing needs is a great consolation. You can save yourself from many problems and expenses arising from medical treatments. You can also have peace of mind from the uncertainties of your financial commitments.
Some of the reasons why many doctors choose SunTrust for their doctor loans include:
- They have a reputation in the industry as one of the leading loan providers.
- They have a dedicated department in healthcare financing.
- They have a team of experienced professionals and counselors.
- They have no non-compete clause.
Suntrust Doctor Loan Program is one of the leading lenders in the industry. And this means there are many people who will come for help.
When you look at their customer service, you will be impressed. They listen to your problems and provide you with the solution that you need. Theyre also willing to work with you when youre under financial distress. You will be able to avail all the financial solutions that you need.
