Home Buying in Queens>Question Details

Lmachuca, Home Buyer in Jersey City, NJ

Are interest rates higher for multiple dwellings?

Asked by Lmachuca, Jersey City, NJ Fri Jun 28, 2013

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Rates are just a tad higher for a multi family house (1-4 units) than a single family. In this case you're looking at residential mortgage rates. If its 5 or more units, you're looking at commercial rates which are higher than residential rates.

If what you asked was about rates on say te 4th or 5th house you finance, then you're looking at investment property rates which are also higher.

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Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
1 vote Thank Flag Link Fri Jun 28, 2013
The answer to your question may vary depending on the lender. Some of the lenders I work with will apply a pricing adjustment for multiple units while others will not. This is why choosing the right mortgage professional is of utmost importance. I, for example, work with many lenders and therefore have more lucrative options than most.

Interest rates will also depend on the type of mortgage you are seeking. Conventional mortgage and FHA loans are priced completely differently. Also, depending on the number of units, we'd need to determine whether or not your mortgage will be within, or above, your county loan limits.

Every scenario is different and should be handled uniquely to meet your goals. If you'd like to weigh out some options to determine which route is truly in your best interest please contact be directly via phone or email; whichever is of greatest convenience.

Kindest regards,

Paul F. Marzolla
Sr. Mortgage Consultant
(201) 957-6768
0 votes Thank Flag Link Mon Jul 1, 2013
Yes they are since they are considered higher risk. Rates are lower for single family homes.
0 votes Thank Flag Link Fri Jun 28, 2013
It depends on the lender. At Residential Finance we do not charge higher interest rates if a property has four units or less.
0 votes Thank Flag Link Fri Jun 28, 2013
Keep in mind that interest rates fluctuate daily; generally can expect to pay more. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore for personalized answers to such questions, and any others you may have, visit with any licensed loan officer.
0 votes Thank Flag Link Fri Jun 28, 2013
If it is an owner occupied building up to four units there should not be much variation in interest rates. If it is non-owner occupied, regardless of the size you can expect to pay more.
0 votes Thank Flag Link Fri Jun 28, 2013
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