Rental Property Mortgage Rates Near Me

If you are looking for rental property mortgage rates near you, expect to find rates that are slightly higher than primary residence mortgages. Lenders are trusting that you will be able to rent the property to tenants and that they will be able to make their payments on time to you.

Don’t be surprised to see mortgage rates for rental properties fluctuate more than primary residence mortgage rates from one lender to the next. Some lenders are more trusting in rental properties than others and may want to see that you have enough money to pay for both your primary residence mortgage and the rental property mortgage at the same time. This is a safety net for the bank in case your rental property fails to attract any renters or those renters fail to pay the rent.

Traditional Mortgages vs Rental Property Mortgages

Mortgage rates can vary from one lender to the next but there are also some key differences in the mortgage itself when compared to that of a traditional mortgage.

• Lenders may wish to see a substantial amount of cash reserves that can cover the cost of the rental property mortgage for a certain number of months.
• Down payment requirements will also be slightly higher for rental property mortgages. Because lenders are taking on additional risk with a rental property mortgage, they will often want you to put more of your own equity into the loan and it’s not uncommon to see minimum down payments over 25%.
• While a primary residence mortgage allows you to purchase private mortgage insurance, this kind of insurance is not available for rental mortgages.

First Bank offers investment property mortgages and has a team of mortgage experts on hand for free consultation. Get more information about rental property mortgage rates near you and learn why First Bank is the ideal option for your next purchase.