This example illustrates how rental property loans are offered at slightly higher rates than owner occupied residences.
*This is not an advertisement or a rate quote, just an exapmle.
In order to get a detailed look at the differences, let's use the following exmple:
Property Profile: single family dwelling – one unit
Borrower Profile: perfect credit, adequate qaulifying income, more than two years with the same employer and sufficient saving and reserves.
Transaction: 75% loan-to-value refinance, $400,000 property value, $300,000 loan amount, on a 30 yr. fixed loan.
|Owner Occupied Loan||Rental Property Loan|
|Monthly P&I Pmt.||$1,432.25||$1,475.82|