Investment Property Mortgage Rates

[Anne-Marie Singer]

How much higher are mortgage rates for short term investment properties than typical primary home rates?

Does this change in different markets?

[Zach Wain]

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.