Fannie Rate adjustments for investment property

Fannie Rate adjustments for investment property

Attorney · Claremore, OK · Member since 2013 · 125 posts · 61 votes

I see rates on the internet for primary homes 30 year fixed rates.  Is there a typically formula for how much that rate should increase if the property is an investment property instead of an owner occupied property?  Is there a typical increase in the rate if the house does not have a mortgage but is doing a cash out refinance?

If it makes a difference the property is in Oklahoma.

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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
7y

https://www.fanniemae.com/content/pricing/llpa-matrix.pdf

About 0.5 on that translates into ballpark 0.125% to rate. Add up your adjustments, divide by 0.5, multiply by 0.125.

Lenders are allowed to have extra hits, for example small loan amount is frequently a hit, as is 5+ mortgages. Lenders are not required to disclose this to consumers. 

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