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If you’re planning to buy an income-generating property, shopping around to find the best mortgage rates can help you make the most of your investment.

Check out today’s investment property mortgage rates and learn how these types of rates are determined.

Current investment property mortgage rates

Until recently, mortgage rates across the board have increased this year. But rates have been inching down in recent weeks, and they’re expected to fall throughout 2023. This means that borrowers will likely be able to snag lower rates later this year.

As you explore rates, keep in mind that investment property mortgage rates are usually higher than mortgage rates on primary residences or second homes.

See how investment property mortgage rates compare

Check out today’s mortgage rates to see how rates are trending. These rates are for all mortgages, not just investment property mortgages.

Investment property definition

When using a mortgage to buy a property, buyers can choose from three types of occupancy: primary residence, second home, and investment property.

Your primary residence is your home, and the place where you live for the majority of the year. A second home is a home you occupy only some of the time, such as a vacation home.

Investment properties are properties purchased solely for the purpose of generating income, often by renting it out on a short- or long-term basis. Investment properties are not owner-occupied, meaning the owner doesn’t live in the home.

Are investment property mortgage rates higher?

The main reason investment property mortgage rates can be higher than other types of mortgages is that lenders consider investment property mortgages to be at a higher …read more

Source:: Businessinsider