Investment property mortgage rates are typically one percentage point (and up to four points) higher than traditional home loans. With inflation still higher than expected, the average 30-year fixed mortgage rate rose to 7.33 percent as of April 17, 2024. Current investment property mortgage rates have generally moved up a bit in February, with 30-year mortgage rates averaging 6.52%. According to Freddie Mac, the rate for a 30-year fixed-rate mortgage averaged 7.10% for the week ending April 18. To arrive at the rates above, we added 50 basis points to the average rate for a 30-year, fixed-rate mortgage. Mortgages for investment properties can range significantly depending on various factors such as credit score, down payment, and property type.
Second home mortgage rates vs. investment property mortgage rates show that mortgage interest rates are higher for second homes and investment properties due to the increased risk associated with these types of properties. It is important for investors to carefully consider the implications of higher rates on their investment strategies.
Learning how to unlock value from rental properties with a home equity loan can provide investors with access to funds for further investments and property improvements. Understanding the potential benefits and risk of leveraging equity in rental properties is crucial for making informed financial decisions.