Rental Property Loan Rates Example

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