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What are the current interest rates on buying a home in michigan?

My husband thinks that if we buy 2 houses, one will be about 2% interest charged, and the second home we buy will be about 5%. Is this true and why? Even if we pay for the first house with cash and put the appropriate down payment on the second home, will the interest still be 5% even if we payed for our first home in cash upfront?

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If you buy a home in cash, there is no interest, because there is no loan to apply interest to.

The second home would depend on the financing and your credit. I believe mortgage rates hover around 2-6%. If you can supply a substantial down payment - 20% or more - then your interest rate will go down. Also if you have a good credit history, and do not currently have a lot of debt, lenders are more willing to make deals to get you as a customer.

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It all depends on how good your credit score is

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