What happens if you get a 30 year mortgage on investment property?



What happens if you get a 30 year mortgage on investment property?

A higher interest rate or shorter loan term will mean higher monthly payments. A 30-year loan on your investment property will generally mean lower monthly payments, but more interest paid over the life of the loan. Can I get a mortgage for an investment property?

Can I get a mortgage for a rental property or investment?

So getting a mortgage for a rental property or investment property tends to come with slightly higher interest rates.

What type of loan is best for buying a rental property?

Generally, the loans most available for rental properties are conventional mortgages and jumbo loans. If you already own a home, you may be able to access the equity in your current home to purchase a rental property.

How much does it cost to pay off a 30-year mortgage?

With a 30 year loan, you pay about $430 for the mortgage, so including expenses, you cash flow about $70 per month. Also, $96 of the principle is also paid off, so in total, in the first year, you make about $2000 on your $20,000 down payment, a 10% ROI.