Buying mortgage rates
- Thread starter Danadu
- Start date
The Motor Court Company
Well-known member
Don’t commit mortgage fraud
sgip
Well-known member
A second home is for your "exclusive use and enjoyment" and cannot be occupied (by you) for more than a few months of the year to be considered a 2nd home. That said, because occupancy fraud is rampant, if you have 2-3 rental properties out of the area and want to add a new "2nd home", most lenders will significantly question your motives and perhaps require the purchase to be considered a rental rather than a true 2nd home.
If conforming loans are 7 for an owner occupied purchase, a 2nd home will be about 7.25, and a non-owner loan rate will be in the upper 7's. Most jumbo lenders are very shy about investment purchases so these better rate products may be difficult to obtain.
If conforming loans are 7 for an owner occupied purchase, a 2nd home will be about 7.25, and a non-owner loan rate will be in the upper 7's. Most jumbo lenders are very shy about investment purchases so these better rate products may be difficult to obtain.
Raymond
Member
Property's not occupied by borrower's are considered more risky so Investors offset the risk with a higher interest rate.