Mortgage rates for investment properties?

[TheFied]

In general, if I were to apply for a loan on investment property (standard house) for a 30 year fixed rate mortgage, how much higher (in general) will my rate be than if it were my primary residence? 1%? More? Less?

 

[AstroVol]

More than 1% for sure, probably more like 3-4% more.

If it's feasible, the thing I would suggest is to open an interest-only home equity line of credit on your primary residence, along with savings, to purchase the property outright, and then refinance with a lower rate and pay yourself back. That's not always possible with an expensive property, but you will undoubtedly get the best interest rates possible doing it this way, which can make a huge difference in the long run.

 

[Bfrey]

Actually, you are correct at around 1%. PM me if you need a quote.

 

[bluto]

prime + one-ish is what i have seen/heard recently.

 

[AstroVol]

Sounds like things have changed. My bad.

 

[Bfrey]

No worries Astrovol

If you can prove your income and have good credit than you need 10% down to get a good rate.

If you can't prove your income and have good credit you need 25% down.

By good credit I mean 680 and above.

Par Interest Rate on a 30YR Fixed with 10% down is 6.5%

 

[bluto]

astro, might not be too far off depending on the mortgagor's financials. just a few months ago i believe a low to mid 8 was a solid int. rate on a 1-4 fam. investment property but that has obviously come down.

 

[HoustonHorn]

I locked in at 6.5% a couple of weeks ago, but I understand it was a brief low and went back up almost immediately.

Call Brooks Hiller at 936-258-8040. I talked to him after he responded to my post on Hornfans a while back and he has been extremely helpful and willing to talk.