Investor · Cedar Rapids, IA · Member since 2009 · 143 posts · 29 votes
What kind of interest rate spread do you typically get at banks for loans on investment properties vs. the interest rate they charge for owner occupied houses?
For a conventional 30 yr mortgage, the bank I went to quoted me a rate 5/8 percent above their owner occupied rate. He told me they typically charge 5/8 or 3/4 percent higher for investment properties. (0 points for both)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Adam, I'd say that is very good, sure that's a 30 year note and not just amortized for 30? Here, a point higher is a good rate, 2 points for newbies or non-customer types is common and a point, but my last was 1/0 I believe. This will vary by geography or regions, larger cities will generally have better terms as there is more competition. :)
Adam, I'd say that is very good, sure that's a 30 year note and not just amortized for 30?
Yea, it's an actual 30 year note, no balloon. It's not commercial, I'll be qualifying based on the income from my job. Good to hear that it seems to be a pretty low spread. Most banks only advertise their owner occupied interest rates so I wasn't sure how much more for investment property was normal.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
12y
In my area it is 1% more for commercial for me. I have heard it go as high as 2% but have never done that personally. My current bank only does 15 year notes not 30 y so I do not know if going longer would change anything.