Today's average rate
30-year fixed rate:APR 6.677%
0.00%
Today
-0.27%
Over 1y
15-year fixed rate:APR 5.835%
0.00%
Today
-0.28%
Over 1y
5-year ARM rate:APR 7.518%
0.00%
Today
-0.50%
Over 1y

Compare Today's Investment Property Mortgage Rates

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners and here's how we make money.

Why do you want a home loan?
Showing: Purchase, Good (720-739), 30-year fixed, Single family home, Investment property
Showing: Purchase, Good (720-739), 30-year fixed, Single family home, Investment property
License information

6 results:

30-year fixed

Farmers Bank of Kansas City
EXPLORE QUOTE
Farmers Bank of Kansas City: NMLS#613839
Lowest APR
Lowest monthly payment
Great for Rate transparency
Conventional 30-year fixed
Farmers Bank of Kansas City
4.5
NerdWallet rating
APR
6.964% 
Interest rate
6.75% 
Mo. payment
$2,595 
Insurance $0
Total fees
$8,615 
About this lender
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.
Tomo
EXPLORE QUOTEon Tomo
on Tomo
Tomo: NMLS#2059741
Great for Mortgage rate transparency
Conventional 30-year fixed
Tomo
4.0
NerdWallet rating
APR
7.109% 
Interest rate
6.875% 
Mo. payment
$2,628 
Insurance $0
Total fees
$9,340 
About this lender
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.
Northpointe: NMLS#447490Conventional 30-year fixed
Northpointe
APR
7.285% 
Interest rate
7.125% 
Mo. payment
$2,695 
Insurance $0
Total fees
$6,319 
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.
Simplist: NMLS#1764611Conventional 30-year fixed
Simplist
4.5
NerdWallet rating
APR
7.648% 
Interest rate
7.5% 
Mo. payment
$2,797 
Insurance $0
Total fees
$5,712 
About this lender
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.
Central Bank: NMLS#407985Conventional 30-year fixed
Central Bank
4.0
NerdWallet rating
APR
7.878% 
Interest rate
7.875% 
Mo. payment
$2,901 
Insurance $0
Total fees
$112 
About this lender
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.
First Federal Bank: NMLS#408902Conventional 30-year fixed
First Federal Bank
APR
8.012% 
Interest rate
8% 
Mo. payment
$2,936 
Insurance $0
Total fees
$455 
About this lender
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.


A Beginner’s Guide to Investment Property Mortgage Rates
Last updated on May 2, 2022
Written by 
Kate Wood
Lead Writer/Spokesperson
Jeanette Margle
Edited by 
Jeanette Margle
Lead Assigning Editor
Fact Checked
Kate Wood
Written by 
Lead Writer/Spokesperson
Jeanette Margle
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.

Check out our other mortgage and refinance tools

Lenders

Get pre-approved

Get your true budget and find a home with ease.
Calculator

Calculate your mortgage

Figure out your estimated payments the easy way.
Calculator

Should You Refinance

Calculate how much you can save by refinancing
Explore more quotes

Mortgage rates by loan type

30-year-fixed mortgage rates