What interest rate should I expect on my first rental property?
I am about to get my first investment property with my brother and I am shopping for lenders. We both have credit scores above 740 and make a combined income of $230k. We have no other debt besides the house we own and live in together. We are going to buy a $235,000 home and put 20% down on it.
I have heard that investment properties cost on average 1 additional percentage point on what I would normally get. So if I were to qualify for a 3.875% primary residence mortgage, I can expect a 4.875% investment property mortgage. Is this accurate? Do interest rates on investment mortgages vary widely from lender to lender?
I am about to apply for a loan with 5 lenders and don't know what to expect (or how many lenders to contact)
Current list of lenders to apply for:
CMG Financial
Quicken Loans
Chase
Flagstar
Fairway Independent Mortgage Corporation
Thanks!