Investment Property Loan Rate

Real estate investments can be quite profitable nowadays. The only problem with property investments is that you need some serious capital to start such a business. If you don’t have enough money, there are several ways to get some. Among all the possibilities is of course a bank loan. If you have some properties, and the bank trusts you, the only thing you will have to worry about is the investment property loan rate.

Several Investment Property Loan Options

The real estate investments loan types can vary, and so will the investment property loan rate. Real estate investor loans nowadays can offer several different options to any borrower. Unfortunately, these options can sometimes be very confusing, so you need to be attentive and make the right choice. Most of the banks have a professional and knowledgeable staff that understands investor loans and can be of great help, and give you exact data on your investment property loan rate.

Due to the fact that there are hundreds of different scenarios and options available for you, it is impossible for an inexperienced investor to manage them. But, to get things started, here are some of the most common real estate investment loan options.

A. 100% financing – this is a great program for those who want to refinance or to sell a property, within a short while. There is generally no sort of prepayment penalty, but thus loan option is available only for residential properties.

B. 95% piggyback financing – the number 95% is calculated as follows: 80% first mortgage loan and the rest of 15% the second mortgage loan. The first mortgage has a fixed investment property loan rate that amortizes the mortgage, and the second one can be adjustable according to your personal needs.

C. 90% financing and 80% financing – in both of these cases there is no private real estate mortgage insurance, and it is available for all sorts of properties (single family, duplex, triplex and so on). In these cases, there is a fixed investment property loan rate.

Refinance Loan Programs Available

A. 90% financing – this loan option is recommended for refinancing at a new low investment property loan rate. The options available are: fixed rate, adjustable and interest-only.

B. 85% financing – in this case, cash out is acceptable, and will have private mortgage insurance. The other options are the same as the one in the 90% financing.

C. 80% financing – there is a fixed investment property loan rate, adjustable and interest-only. Cash is acceptable and no private mortgage insurance.

D. 75% financing. This real estate loan option is great for stated income borrowers. There is no seasoning required and also no private mortgage insurance.


Many loan programs are available nowadays. I hope that this can help you appreciate the different options available to you so that you are able to make a more informed and financially viable choice when it comes to deciding on your investment property loan rate.

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