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 | |
| Loan Amount | $300,000 | $300,000 |
| Interest Rate | 4.000% | 4.250% |
| Monthly P&I Pmt. | $1,432.25 | $1,475.82 |
| Origination Points | $0.00 | $0.00 |
| Appraisal Fee | $500.00 | $775.00 |
