Investment Property Loan Rates: Following the Trends

Investment property loan rates can fluctuate dramatically due to a number of variables including location of the property, personal credit scores and the federal prime rate, just to name a few. It is important to be familiar with factors that are within your control to help better your chances for the best loan rate possible. Consider the following when working to procure the best rate:

  • the term of the loan - Typically the shorter term you finance for, the better the interest rate.
  • how much flexibility you need. Figure out what you can afford and if there will be flexibility should you opt for an adjustable rate mortgage versus a fixed rate.
  • how much money you can afford to put down - The more you can put down, the better the rate you will be offered. Banks are having to take less of a risk on you and will reward you accordingly.
  • how much you can afford to pay both now and down the road - This will help you determine the term of the loan and type of loan to select.
  • your long term goals - Knowing how long you plan to own the property helps determine which loan is best for you for the financial long haul.

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