30 year investment mortgage rates explained for long-term investors

For rental property buyers, 30-year fixed financing offers predictability, but investment pricing differs from primary homes. Lenders add risk premiums, so quotes often run higher, and closing costs or points may be needed to hit a target rate.

What drives the rate you receive

Expect pricing to hinge on credit score, loan-to-value, property type (single-family vs 2–4 units), reserves, and documentation. Paying discount points can lower the note rate, while cash-out, condos, or smaller loan sizes may nudge it up. Market forces-Treasury yields, inflation data, and Fed policy-also move daily quotes.

Pros and cons at a glance

• Pro: Fixed payments aid cash-flow planning over decades.
• Pro: Longer amortization preserves liquidity for repairs and vacancies.
• Con: Higher rates and LLPA add-ons reduce leverage and returns.
• Con: Prepayment or refinance costs can erode yield if rates drop.

How to compare offers

Request written quotes same day, ask for par-rate and one-point options, and standardize assumptions.

1. Review APR and total cost at year five and year ten.
2. Match LTV, property type, and occupancy across lenders.
3. Weigh buydowns versus flexibility to refinance later.