| Investment Property Mortgage Rates
When planning to purchase or refinance
a rental property, you should research current
investment property loan rates and determine
which home loan program makes the most sense
for your individual situation. Mortgage
rates for investment properties can vary
depending upon a number of variables including
but not limited to the number of units the
property contains, the loan amount, the
percentage of equity owned, and the state
that the rental property is located in.
For example you should not expect to get
similar investment property mortgage rates
for a $50,000 rental condo with 25% equity
as your would for a $400,000 duplex with
50% equity. The rates published in the surveys
throughout this site are for primary residences.
Investment property loan rates are typically
higher because they carry a greater risk
for default than primary residences. Still,
you can get an idea of who offers competitive
current mortgage rates and then reach out
to them for a customized quote for your
rental property.
Some Questions to Ask When Researching Investment Property Loan Rates and
Programs
- What downpayment is required? Many lenders no require 25% down or more.
- What type of appraisal is needed? Appraisals for investment properties may
cost more.
- What are the principle, tax, and insurance reserve requirements needed (PITI)?
- Will I be able to use rental income to qualify?
- What type of documentation will be needed?
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