I’m pretty new to this. Thinking about getting a quadplex as a primary residence and start little landlord thing. So, I met one person from the army that told me he has gotten 1.5% interest rate VA loan in 2021 and making crazy profits. Whenever I try to google – it’s never below 5.3%. Anybody have any idea how is below 2% interest possible or maybe it was possible back in 2021? Thank you
Posted by Normal_Debate5905
4 Comments
The Federal Reserve sets the interest rates and changes them based on key indicators of the economy. During covid the interest rates were extremely low.
That was all timing and luck on his part.
I’ll pile on and say that when people talk about rental income in the military, they always over inflate it. You’re friend is probably doing very well at that rate that he snagged at a great time, but maintenance and vacancy never gets factored in when you’re bragging to your friends about how well your rental is doing lol
Yeah and rate get heavily influenced by the rate the fed sets. The FEDeral reserve tends to lower the rate during economic hardship, like recessions
Brotha…you need to take a week and research before you move forward on this. In the most respectful way possible you are lost. 2021 housing market might as well be planet fuckin Mars. Rates are set by the federal reserve as someone else said and it goes from there. Rates are sitting pretty solid around that 5% (probably with program incentives) up to 7% for your regular Joe schmo with average credit and debt