How Much Higher are Mortgage Rates for an Investment Property?

Lenders base your interest rate on the riskiness of your loan. Once a lender decides how likely you are to default on your loan, they determine your interest rate. They look at factors such as your credit score, debt-to-income ratio, and type of income. One more factor they consider, though, is the type of home. If it’s not owner-occupied and is an investment, it adds another layer of riskiness for the lender. Compare Offers from Several Mortgage Lenders. When you borrow money to buy the home you will live in, you have an incentive to make your payments. It’s...

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