I've been told that I can expect a higher interest rate when I buy a house to use as a rental property than I would if it were a primary residence. What sort of a difference are we talking? 1%? more? less?
Also ditto that for insurance. I can only assume that it would be more, but how MUCH more is the question.
Glenn S
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Prime has nothing to do with real estate rates....non-owner rates run about 1%-1.5% over owner occupied rates. Also expect to pay 25%-30% as a down payment vs. 3.5%-20% down on owner occupied.
Expect to pay less money for insurance on a rental vs. a normal homeowner policy......the reason is that insurance on rentals don't insure or they limit coverage for personal property. Generally speaking with a homeowners policy if the building (fire policy) is $100,000 the contents or personal property would be $50,000. In a rental property policy the amount might cover only $5000 of the owners personal property. With a rental policy you are buying less coverage so the price is lower.
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RE :Interest rates for a rental property?
I've been told that I can expect a higher interest rate when I buy a house to use as a rental property than I would if it were a primary residence. What sort of a difference are we talking? 1%? more? less?
Also ditto that for insurance. I can only assume that it would be more, but how MUCH more is the question.
Follow 4 answers
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I recommend you to visit this website where onel can compare rates from the best companies: http://HELP-INSURE.NET/index.html?src=2YAEhh84jlU26JAb
RE :Interest rates for a rental property?
I've been told that I can expect a higher interest rate when I buy a house to use as a rental property than I would if it were a primary residence. What sort of a difference are we talking? 1%? more? less?
Also ditto that for insurance. I can only assume that it would be more, but how MUCH more is the question.
Follow 5 answers
rusty_266
Standard rate is 2% over prime. Insurance will vary depending on the area, and may or may not be more. Remember, on a rental property, you are not insuring the belongings like you would in a house you live in.
Anonymous
You can save a lot of money on your insurance by comparing quotes at: INSURANCEFORCHEAP.INFO