Technically, mortgage rates for investment property are affected by several factors. For example, your down payment, creditworthiness, and the type of investment property you choose.
But usually, the mortgage rates on an investment property ranges from 50 to 87.5 basis points higher than primary home mortgage rates.
Investment property mortgage rates are higher than rates on a personal residence because investment properties are considered higher risks.
When something goes wrong and things get tough, it is easier to bail on an investment property than your personal residence.
For those of you who are looking for top investment property loans, below are some recommendations for you.
Lendio is the best loan firm for commercial properties. It is because they offer a marketplace platform in which an investor can easily fill out one application and receive offers from some competing lenders.
It also offers a wide variety of financing options and lenders, personalized guidance, and experts to help you to interpret your loan offers.
Lendio is a free online service for investors where they can receive potential commercial loan offers within minutes.
It takes only 15 minutes for you to receive those loan offers of more than 75 lenders. Lendio has funded more than 300,000 loans so that you do not have to be worried about their experience and reputation.
Lendio is an excellent choice for commercial property investors because it can help them to efficiently and quickly shop for the best terms.
With multiple options, you can find the best mortgage rates for investment property according to your needs and preferences.
Lendio underwrites commercial real estate loans, multi-unit loans, and residential loans. It also offers business loans as well.
If you meet the qualifications for one of the agency loans, such as FHA, the down payment you need to pay can be as low as 3.5 percent. While the interest rates start from 4.25 percent.
LendingOne is a great option if you are looking for the best rehab property lender. It is because LendingOne is one of the very few commercial mortgage lenders that make it easy for users to get a pre-approval letter.
Pre-approvals of funds will be available online within only minutes. Financing up to 90 percent loan-to-cost, this mortgage lender offers lower fees and rates as well as higher leverages compared to their competitors.
Different from the cheapest car insurance, those are the mortgage rates for investment property.