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.
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.
6.677%
30-year fixed-rate“
On Friday, December 13, 2024, the average APR on a 30-year fixed-rate mortgage remained at 6.677%. The average APR on a 15-year fixed-rate mortgage remained at 5.835% and the average APR for a 5-year adjustable-rate mortgage (ARM) remained at 7.518%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 15 basis points higher than one week ago and 27 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.
Product | Interest Rate | APR |
---|---|---|
30-year fixed-rate | 6.602% | 6.677% |
20-year fixed-rate | 6.440% | 6.534% |
15-year fixed-rate | 5.718% | 5.835% |
10-year fixed-rate | 5.500% | 5.687% |
7-year ARM | 7.116% | 7.452% |
5-year ARM | 7.216% | 7.518% |
3-year ARM | 8.125% | 8.355% |
30-year fixed-rate FHA | 5.500% | 6.284% |
30-year fixed-rate VA | 5.728% | 6.104% |
Data source: ©Zillow, Inc. 2006 - 2021. Use is subject to the Terms of Use
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.
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.
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.
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.