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Current investment property rates

On Saturday, February 15, 2025, the national average 30-year fixed mortgage APR is 6.99%, according to Bankrate's latest survey of the nation's largest mortgage ... lenders. Use Bankrate's rate table to compare today's investment property APRs.

Pros and cons of investment property mortgages

Pros of investment property loans

  • You can borrow more compared to a conventional conforming loan. Investment property mortgages don’t have set loan limits, unlike conforming loans.
  • You don’t have to live on the property. Unlike a loan for a primary residence, you don’t have to live on the property to get an investment property loan.
  • You can deduct mortgage interest. If you itemize your tax return, you can deduct mortgage interest, as well as other rental expenses.

Cons of investment property loans

  • You’ll have a higher interest rate compared to a loan for a primary residence. Investment property mortgages are riskier for lenders. Added risk translates to higher interest rates.
  • You’ll need to meet stricter underwriting requirements. When compared to a mortgage for a primary residence, investment property mortgages often require more cash reserves, a better credit score and a higher down payment.
Conventional Loan Investment property loan
Loan amount $320,000 $320,000
Interest rate 7% 7.75%
Monthly payment (Principal and interest) $2,129 $2,293
Total interest paid over 30 years $446,428 $505,307
Conventional investment property loans Conventional primary residence loans
Not offered by every mortgage lender Offered by virtually all mortgage lenders
Often have higher interest rates, but also no restrictions on loan amount Lower conforming loan limits, plus jumbo (non-conforming) options
Stricter credit, debt-to-income (DTI) ratio and down payment requirements Standardized credit, down payment and DTI ratio requirements with most mortgage lenders
For one- to four-unit properties For one-unit properties or owner-occupied multifamily properties
Possible to deduct mortgage interest (within IRS guidelines), plus rental expenses Possible to deduct mortgage interest (within IRS guidelines)

Investment property FAQ