Is 6.25% interest a decent rate? The loan officer said it was variable. I'm not sure he can offer a fixed on the property I'm looking at. This one actually has a home on it but is not in good enough shape to live in. I may look at gutting it down to the studs and renovating it but more than likely it will get demolished. He also said he would only need 10% down (I guess because of the old house) but I would probably put 20% down so I don't have to have the mortgage insurance. Working on pre-approval now so I can make an offer when the time comes. Thoughts on this scenario are welcome. What am I missing?
I wouldn't do a variable rate loan in a rising interest rate environment, like what we're in right now. 6.25% sounds high for current environment, especially for a variable.
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