If this is a second home not a first time buy what is the interest rate?

Asked by Jeltschlager, Mid City, Los Angeles, CA Tue Jun 28, 2011

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Dorene Slavitz’s answer
Dorene Slavi…, Agent, Torrance, CA
Fri Jun 22, 2012
Dear Jelts,
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.
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Richard "RJ"…, Agent, Beverly Hills, CA
Tue May 29, 2012
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.
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Kawain Payne, Agent, Seal Beach, CA
Sat May 26, 2012
Your interest rate will depend on: your income, amount of debt you have, and your credit score.

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
0 votes
., , Los Angeles, CA
Thu Jun 30, 2011
As mentioned by the other agent, it's on a case by case basis. Debt to income is a large part of what many buyers are up against. I always tell buyers to get three different oppinions from lenders. One from a credit union, if you're a member; one from THE bank, if you have a good relationship and an account with one; and one from a mortgage broker. Brokers like Prospect Mortgage and Home Services Lending are brokers and in house lenders so they act as the best of both worlds. Often there is less red tape and more customer service with an in-house lender. I'm happy to forward a few referrals if you like to start that dialogue withthem.


Renee' Kische
Keller Williams Hollywood Hills
0 votes
Emily Knell, Agent, Huntington Beach, CA
Tue Jun 28, 2011
Every answer you're going to get is going to be along the lines of "It depends on your credit, income & debt ratios". If you're perfect in every way, interest rates for owner occupied properties are SO LOW right now, for an investor they're typically about a 1/2% higher.

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.

562-430-3053 c
Realtor Since 1996
Main Street Realtors
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, ,
Tue Jun 28, 2011
Unless the first time you bought a home was through a special first time homebuyer loan program with discounted interest rates, your 2nd, 3rd, 4th, etc. purchase of a primary residence should have the same interest rate as your 1st purchase of a primary residence (assuming interest rates never actually change - which we all know isn't true).

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
- Loan-to-Value
- 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.)
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