Well that depends upon your credit rating, dept to income ratio, loan amount and so on. Interest rates are higher for income, vacation and second property that is not owner occupied. But even so, the current interest rates are pretty low. Low enough to make a income property purchase look very attractive.
This is a loaded question... each case is very specific to a persons credit scores, debt ration, income, etc... You should speak to the person who gave you a loan on your other property and let them work the numbers for you since they would probably be the most familiar with your situation. Good luck.
Even if you are buying a second home, you can still get the best prevailing rate if you qualify.
Best of luck to you,
Kawain Payne, Realtor
Keller Williams Hollywood Hills
You could easily contact my lender Patty Villanueva at Patty@URM1.com, she's with United Realty & Loan & can shop all the banks for the best rate, she's quick to respond to email.
Realtor Since 1996
Main Street Realtors
If you were going to be buying a home as a 2nd home, as in a vacation home or a commuter residence, then the interest rate is the same as if you are buying a primary residence.
If you were buying an investment property, for the same rate as on a primary residence expect to pay 1.75% (25%) down) to 3.75% (less than 25% down) more in "points" (and even more if it's a multi-unit property).
With conforming financing, interest rates are primarily dependent on:
- Loan amount (high balance conforming vs. regular conforming)
- Credit score
- Purpose (purchase, refinance with cash out, refinance without cash out)
- Occupancy (primary residence, second home, investment property)
- Property type (single family house, condo, 2-4 units, etc.)