Quoted a 5.25% First Lien Mortgage

I was quoted a 5.25% interest rate (5.29% APR) for a first lien mortgage loan. This seemed kind of high to me (740+ credit score) based on interest rates from Bankrate. I am taking a second lien as well at 5%. Does the fact that I’m taking out a second lien increase the first liens interest rate, or am I just being quoted 50 bps more for no reason other than the lender wanting to increase their spread? The former seemed counterintuitive given that I thought a first lien would have first dibs in case of any adverse action.

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I was quoted a 5.25% interest rate (5.29% APR) for a first lien mortgage loan. This seemed kind of high to me (740+ credit score) based on interest rates from Bankrate. I am taking a second lien as well at 5%. Does the fact that I’m taking out a second lien increase the first liens interest rate, or am I just being quoted 50 bps more for no reason other than the lender wanting to increase their spread? The former seemed counterintuitive given that I thought a first lien would have first dibs in case of any adverse action. submitted by /u/NonTargetSadness [link] [comments]

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