Updated about 1 year ago on . Most recent reply
Investment Property Mortgage Rates
How much higher are mortgage rates for short term investment properties than typical primary home rates?
Does this change in different markets?
Most Popular Reply
If you are getting a conventional (full doc) loan, the delta in rate between primary homes and rental homes varies depending on the downpayment amount. Long term and short term rentals are priced the same on conventional. These numbers will change daily, but it gives you a ballpark idea
15% down, 1%-1.25% higher rate and high PMI
20% down, 0.75% higher in rate
25% down, 0.5% higher in rate
30% down, 0.375% higher in rate
If you are talking about DSCR loans, that is an entirely different animal with different pricing options and prepayment penalties to consider. Jumbo rates will look different as well.