6.998% APR 

Compare Today's Investment Property Mortgage Rates

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Applied Filters: Good (720-739), 30-year fixed, Single family home, Investment property
Applied Filters: Good (720-739), 30-year fixed, Single family home, Investment property
License information1 result:
30-year fixed
on Tomo
Tomo: NMLS#2059741
Lowest APR
Lowest monthly payment
Great for Mortgage rate transparency
Conventional 30-year fixed
NerdWallet rating
Interest rate
Mo. payment
Insurance $0
Total fees
About this lender
  • Special program offers a pricing break for first first-time home buyers.
  • Offers financing options for self-employed borrowers and those without Social Security numbers.
  • Interactive mortgage rates tool takes credit score and location into account.
  • Purchase loans are not available in all states.
  • Doesn’t offer home equity loans or lines of credit.
  • No refinancing options are available.

About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.

Mortgage rate trends (APR)

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NerdWallet’s mortgage rate insight


30-year fixed-rate

On Tuesday, May 28, 2024, the average APR on a 30-year fixed-rate mortgage fell 4 basis points to 6.998%. The average APR on a 15-year fixed-rate mortgage fell 3 basis points to 6.165% and the average APR for a 5-year adjustable-rate mortgage (ARM) remained at 7.797%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 10 basis points higher than one week ago and 15 basis points lower than one year ago.

A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.

Current mortgage and refinance rates

ProductInterest RateAPR
30-year fixed-rate6.926%6.998%
20-year fixed-rate6.640%6.732%
15-year fixed-rate6.045%6.165%
10-year fixed-rate5.880%6.060%
7-year ARM6.844%7.644%
5-year ARM6.806%7.797%
3-year ARM8.125%8.355%
30-year fixed-rate FHA6.179%6.953%
30-year fixed-rate VA6.034%6.424%

Data source: ©Zillow, Inc. 2006 - 2021. Use is subject to the Terms of Use

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A Beginner’s Guide to Investment Property Mortgage Rates
Holden Lewis
Last updated on May 2, 2022

How do I shop for current investment property mortgage rates?

NerdWallet’s mortgage rate tool can help you find competitive investment property mortgage rates. In the "Refine results" section, enter a few details about the loan you’re looking for and select "Investment property" from the "Home purpose" drop-down menu. You’ll get a personalized rate quote in minutes, without providing any personal information. From there, you can start the process to get preapproved for an investment property loan. It’s that easy.

Why are interest rates higher on investment or rental properties?

Your interest rate will generally be higher on an investment property than on an owner-occupied home because the loan is riskier for the lender. You’re more likely to default on a loan for a home that’s not your primary residence. That’s a good reason to use our investment property mortgage rate tool to compare prevailing interest rates that you qualify for.

In addition to paying higher investment property interest rates, it’s likely you’ll have to make a higher down payment. Conventional mortgages generally require at least 15% down on a one-unit investment property and 25% down on a two- to four-unit investment property. And loan terms are usually shorter than the typical 30-year residential mortgage. After all, it’s a business transaction, rather than a home purchase.

How do I compare investment and rental property mortgage rates?

The only way to find the lender with the most competitive investment or rental property mortgage rate is to compare multiple lenders, and then compare their rates and fees. Within days of being preapproved, you’ll receive a Loan Estimate from each lender. These let you compare every aspect of the loan side by side, so you can see the total cost including the investment property mortgage rate, origination fee, closing costs and more.

» MORE: How much you could save by comparing mortgage rates

What is a good investment property interest rate?

A good investment property rate varies from day to day, as rates change based on numerous economic and noneconomic factors. To find the best rate for an investment or rental property, you’ll want to compare investment property mortgage rate quotes from multiple lenders.

Will investment property interest rates drop in 2020?

Average mortgage rates fluctuate daily and are influenced by economic trends including the inflation rate, the job market and the overall rate of economic growth. Unpredictable events, from natural disasters to election outcomes, can impact all of those factors. See NerdWallet’s mortgage interest rates forecast to get our current take.

Investment loan pros and cons


  • You don’t put your primary residence at risk, as you would if you financed a home equity loan or a HELOC against it to go toward your investment property purchase.

  • You may be able to use a portion of the projected rental income from the investment property to qualify for an investment mortgage.


  • You’ll have to make a higher down payment than you would for a primary residence. This could be as much as 25% for a multi-family property. Don’t forget to factor in closing costs and fees, too, when you’re figuring out your upfront costs.

  • Investment property interest rates are higher, and though you may be able to get a rental property mortgage with a credit score as low as 640, you’ll need a higher credit score to get the lowest possible rate.

  • Though it varies by lender, you’re likely to be required to have extensive cash reserves. This can be anywhere from four to eight months’ worth of mortgage payments, taxes, insurance and homeowners association fees. That may be calculated per property, which adds up fast if you already own other investment or rental properties.

How are mortgage rates set?

At a high level, mortgage rates are determined by economic forces that influence the bond market. You can’t do anything about that, but it’s worth knowing: Bad economic or global political worries can move mortgage rates lower. Good news can push rates higher.

What you can control are the amount of your down payment and your credit score. Lenders fine-tune their base interest rate on the risk they perceive to be taking with an individual loan.

So their base mortgage rate, computed with a profit margin aligned with the bond market, is adjusted higher or lower for each loan they offer. Higher mortgage rates for higher risk; lower rates for less perceived risk.

So the bigger your down payment and the higher your credit score, generally the lower your mortgage rate.

What’s the difference between interest rate and APR?

The interest rate is the percentage that the lender charges for borrowing the money. The APR, or annual percentage rate, is supposed to reflect a more accurate cost of borrowing. The APR calculation includes fees and discount points, along with the interest rate.

APR is a tool used to compare loan offers, even if they have different interest rates, fees and discount points.

A major component of APR is mortgage insurance — a policy that protects the lender from losing money if you default on the mortgage. You, the borrower, pay for it.

Lenders usually require mortgage insurance on loans with less than 20% down payment (in a home purchase) or less than 20% equity (in a refinance).

Learn more about investment properties:

About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.

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Mortgage rates by loan type

30-year-fixed mortgage rates