No. of Recommendations: 1
Hi Footie,

Any suggestions on mortgages, rates,
Assuming, since you are going into the rental business intentionally with eyes wide open, that this is a firm and stable long term business building decision....
THEN,
I recommend the least investor-program down payment (20%,) on a 30 FRM, buying the interest rate down with closing discount points of 1-2%, and paying all closing costs (including originator compensation) separately in closing cash (not paid internally from rebate of a higher than otherwise available rate.)

The short points are;
1) as little cash into the equity as possible,
2) as low of a permanent a rate as can be bought

recommendations on mortgage companies, etc.?
The company is 1,000% irrelevant... the competency of the loan officer is everything. That's your shopping list, in a nutshell; Find the respect-worthy mortgage pro... even if they appear to cost a premium compensation ('appear' being the operative word) the consequences of their expertise will usually create far better net worth results for you, long term.

We have great credit and our primary residence is paid for. Thanks.
In that case, 1st thing you should do is take an up-to 90% LTV (or combined LTV, if a tophat HELOC can be set up to 90%) cash-out loan on your primary residence. That cash will be much cheaper than anything you can borrow against the investment property.

Don't do the mental game of segmentation.... Getting unecessarily cute with your bookeeping can dearly cost you in net worth, and delayed financial freedom/retirement.
A) Focus on the bottom line of your total aggregate balance sheet,
B) Accumulate cash to eliminate debt on *YOUR* balance sheet... don't forfeit your cash to in order to eliminate your debt on the BANKER'S balance sheet. *CONTROL OF CASH* is King!

Luck!
Dave Donhoff
Leverage Planner
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