What are the interest rates now a days for an investment property? I got quoted a 4.12 the other day... is this a tad high or?

3.75percent 20 percent down two family in New York Market! I have to take a cold shower twice a day.

There are other factors beyond interest rate. Upfront fees and points can result in lower interest rate. Term affects interest rate, so 30 year will generally have higher rate than 15 year. Occupancy affects interest rate and down payment requirements. If you are putting 15% down on a duplex, you are owner occupying. An investor buying that same duplex for non-owner occupying will need 25% down payment. If the lender is issuing a conforming loan (Fannie / Freddie backed), they all follow the same underwriting rules. In other words, a bank can't write a conforming loan with down payment that is different than Fannie / Freddie requirements. If the loan is a commercial loan issued directly by the bank, it is not required to follow Fannie Mae or Freddie Mac underwriting requirements, but that also generally means higher interest rate and shorter lock in time for the rate. Here are Freddie Mac LTV requirements: http://www.freddiemac.com/sing... Here are Fannie Mae LTV requirements: https://singlefamily.fanniemae... My point is don't just ask what the interest rate is. Ask all these questions: 1. Loan term (15 year, 30 year, is it fixed for the entire term or 20 year amortized with 5 year lock for example) 2. Is it owner occupied or investment (this changes rate and down payment requirements) 3. Number of units (single family and 2-4 have different requirements in some cases) 4. What are the upfront fees. Paying points will buy down the rate, but it is more money out of pocket. If someone has not answered all these questions, you don't know if their rate would apply in your situation or not.

So eloquently said, if I may I will refer people to your comment here for future reference.

3.375% 30-year 25% down. Dallas, TX

In addition to the comments noted above by @Joe Splitrock, it's important to note that as of April 1 there were changes that significantly reduced the number of loans secured by second homes and investment property that Fannie/Freddie is permitted to purchase. This has affected rates, fees and LTV. Anyone quoting terms that were locked in prior to April 1, if its on a non-owner occupied purchase those terms are out of date. I closed a conforming 30-year cash-out refi on a 4-unit about a month ago at 3-5/8% and last week I was quoted 4.5%, 75% LTV for a purchase of a duplex from the same lender. I have a great relationship with the lender currently have 4 mortgages with them, 2 portfolio and 2 conforming.

Your lender is correct, Fannie Mae requires 25% down for 2-4 investment properties. Only way to get lower is owner occupy.

I am seeing rates in the mid 3s depending on credit score, ltv, etc, on investment properties here in Florida and Georgia.

@Jon Abadia it does depend on your credit and DTI but yes the rates have gone up for investors and buyers for second homes the last few months. I’ve seen investors over 4%

@Jon Abadia Just got quoted 3.5/30 years/ 25% down

Closed about a month ago at 3.625%. Three unit residential mortgage, 25% down, no points, 30 year term.

What are the interest rates now a days for an investment propertyWhat are the interest rates now a days for an investment property

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What are the interest rates now a days for an investment property

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