Compare Investment Property Mortgage Rates

Showing: Purchase, Good (720-739), 30-year fixed, Single family home, Investment property.

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30-year fixed

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EXPLORE QUOTE

Farmers Bank of Kansas City: NMLS#613839

Lowest APR

Lowest monthly payment

Great for Rate transparency

Conventional 30-year fixed

4.5

NerdWallet rating

APR

6.852%

Interest rate

6.625%

Mo. payment

$2,562

Insurance $0

Total fees

$9,223

About this lender

Visit lender's website

Pros

Displays customized rates, with fee estimates, without requiring contact information.
Offers home equity loans and lines of credit.
Mortgage origination fees are on the low side compared to other lenders, according to the latest federal data.

Cons

Doesn’t offer government-backed FHA or USDA loans, or adjustable-rate mortgages.
Home renovation loans are not available.
Mortgage rates are on the high side compared to other lenders, according to the latest federal data.

EXPLORE QUOTE

on Tomo

Tomo: NMLS#2059741

Great for Mortgage rate transparency

Conventional 30-year fixed

4.0

NerdWallet rating

APR

7.094%

Interest rate

6.875%

Mo. payment

$2,628

Insurance $0

Total fees

$8,740

About this lender

Visit lender's website

Pros

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.

Cons

Purchase loans are not available in all states.
Doesn’t offer home equity loans or lines of credit.
No refinancing options are available.

EXPLORE QUOTE

Northpointe: NMLS#447490Conventional 30-year fixed

4.5

NerdWallet rating

APR

7.19%

Interest rate

Mo. payment

$2,662

Insurance $0

Total fees

$7,575

About this lender

Visit lender's website | Call (866) 356-0885

Pros

Closing may be available within 15 business days.
Offers loans and programs aimed at making homeownership more accessible.
Offers mortgages for investment properties, including jumbo loans.

Cons

Average mortgage origination fees are on the high side, according to the latest data.
Bank’s mobile app isn’t useful for mortgage borrowers.

EXPLORE QUOTE

on Simplist

Simplist: NMLS#1764611Conventional 30-year fixed

4.5

NerdWallet rating

APR

7.644%

Interest rate

7.5%

Mo. payment

$2,797

Insurance $0

Total fees

$5,584

About this lender

Visit lender's website

Pros

Loan origination process can be completed online.
Offers government-backed FHA and VA loans.
Offers module that compares mortgage rates among other lenders.

Cons

Offers loans in many states and Washington, D.C., but not nationwide.
Does not offer home equity loans or lines of credit.

EXPLORE QUOTE

Central Bank: NMLS#407985Conventional 30-year fixed

4.0

NerdWallet rating

APR

7.763%

Interest rate

7.75%

Mo. payment

$2,866

Insurance $0

Total fees

$488

About this lender

Visit lender's website

Pros

Among the best when it comes to online convenience.
Offers a full selection of mortgage types and products, including jumbo, home equity, and government loans.
Claims to offer preapproval within 24 hours of loan application.

Cons

You'll have to complete a loan application to see mortgage interest rates.
Bank branch locations limited to the Midwest.
Does not offer home equity lines of credit.

EXPLORE QUOTE

on First Federal Bank

First Federal Bank: NMLS#408902Conventional 30-year fixed

4.5

NerdWallet rating

APR

7.891%

Interest rate

7.875%

Mo. payment

$2,901

Insurance $0

Total fees

$619

About this lender

Visit lender's website

Pros

Over 40% of all loans last year were FHA, VA or USDA loans.
Average mortgage rates are on the lower side, according to the latest federal data.
Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.

Cons

No dedicated mobile app for mortgage borrowers.
Some loans (including home equity products) are geographically limited.

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.

Trends and Insights

Mortgage rate trends (APR)

NerdWallet’s mortgage rate insight

6.527%

30-year fixed-rate

“

On Thursday, December 12, 2024, the average APR on a 30-year fixed-rate mortgage fell 8 basis points to 6.527%. The average APR on a 15-year fixed-rate mortgage rose 5 basis points to 5.819% and the average APR for a 5-year adjustable-rate mortgage (ARM) fell 5 basis points to 7.413%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 7 basis points lower than one week ago and 43 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

Accurate as of 12/12/2024

Product	Interest Rate	APR
30-year fixed-rate	6.452%	6.527%
20-year fixed-rate	6.346%	6.438%
15-year fixed-rate	5.690%	5.819%
10-year fixed-rate	5.455%	5.625%
7-year ARM	6.999%	7.380%
5-year ARM	6.962%	7.413%
3-year ARM	8.125%	8.355%
30-year fixed-rate FHA	5.500%	6.284%
30-year fixed-rate VA	5.685%	6.057%

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

A Beginner’s Guide to Investment Property Mortgage Rates

Last updated on May 2, 2022

Written by

Kate Wood

Lead Writer/Spokesperson

Edited by

Jeanette Margle

Lead Assigning Editor

Fact Checked

Written by

Kate Wood

Lead Writer/Spokesperson

Edited by

Jeanette Margle

Lead Assigning Editor

Fact Checked

How do I shop for current investment property mortgage rates?

NerdWallet’s mortgage rate tool can help you find competitive investment property mortgage rates. A little fine-tuning can customize the results to you. Enter the ZIP code where the property's located, the price, down payment, your credit score range and the loan term. If you're looking at a multifamily home, a condo or a townhome, click "more" to choose the correct property type — the tool's default is a single-family detached home. Then hit "search" to see your results.

Why are interest rates generally higher on investment or rental properties?

Your interest rate will usually be higher on an investment property than on an owner-occupied home because the loan is riskier for the lender. Lenders believe that borrowers are more likely to default on a loan for a home that’s not a primary residence — especially if you need the rental income to make the mortgage payments — so they charge more to compensate themselves for that risk.

In addition to paying higher investment property interest rates, it’s likely you’ll have to make a higher down payment. Depending on the type of loan, you may have to make a down payment of 15% or more.

How do I compare investment property mortgage rates?

The surest way to find the lender with the most competitive investment or rental property mortgage rate is to apply with multiple lenders, and then compare the rates and fees you're offered. Within three days of applying for a mortgage, you’ll receive a Loan Estimate from each lender. These documents 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.

What is a good investment property mortgage rate?

A good investment property rate varies from day to day, as mortgage interest 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. Strengthening your mortgage application as much as you can will help you get the best rate from a lender.

» MORE: Mortgage rate factors you can (and can't) control

Investment loan pros and cons

Pros

You don't put your primary residence at risk, as you would if you financed your investment property purchase with a home equity loan or a HELOC.
You may be able to use a portion of the projected rental income from the investment property to qualify for an investment mortgage.

Cons

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. Investment loans also tend to require higher down payments.
Though it varies by lender, you’ll likely 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.

Learn more about investment properties

About the author: Kate Wood is a mortgages and student loans writer and spokesperson who joined NerdWallet in 2019. With an educational background in sociology, Kate feels strongly about inequality in homeownership and higher education.