If you're planning to expand your portfolio with real estate this year, securing the best mortgage rates for investment properties in 2025 can significantly impact your profitability. Whether you're buying a rental home, vacation property, or multi-unit building, this guide breaks down everything you need to know about current investment property mortgage rates, top lenders, rate trends, and smart strategies to lock in the best deal.
Why Investment Property Mortgage Rates Matter
Mortgage rates for investment properties are typically 0.50% to 1.00% higher than rates for primary residences. A lower rate means:
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Reduced monthly payments
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Higher net cash flow
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Greater long-term returns on your property investment
Current Investment Property Mortgage Rate Trends (2025)
As of early 2025, average mortgage rates for investment properties are:
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30-Year Fixed: 6.50% – 7.25%
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15-Year Fixed: 6.00% – 6.85%
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Adjustable Rate Mortgages (ARMs): Starting around 6.00% (5/1 or 7/1 ARM)
These rates depend on factors such as your credit score, down payment, property type, and debt-to-income ratio.
Best Lenders Offering Competitive Investment Property Rates in 2025
1. Wells Fargo
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Offers special programs for repeat investors
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Fixed and adjustable-rate options
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Competitive terms with 25% down
2. Chase Bank
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Streamlined process for investment financing
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Offers portfolio loan options
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Flexible terms for multi-unit properties
3. Rocket Mortgage
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Online convenience with personalized rate quotes
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Quick preapproval for investment homes
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Best for single-family rentals and second homes
4. Better Mortgage
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No lender fees and fast closings
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Transparent rate tools
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Competitive for experienced investors
5. U.S. Bank
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Great for multi-property investors
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Offers non-owner occupied mortgage options
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Fixed, ARM, and jumbo loan products
Key Factors That Influence Investment Property Mortgage Rates
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Credit Score – Aim for 700+ to qualify for the best rates.
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Down Payment – 20% to 25% down is often required.
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Debt-to-Income Ratio (DTI) – Lower DTI improves approval odds.
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Property Type – Rates vary based on single-family, duplex, or multi-unit.
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Loan Term – 15-year loans offer lower rates than 30-year loans.
Tips to Get the Best Investment Property Mortgage Rate
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Shop Around: Compare rates from multiple lenders.
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Improve Your Credit: Pay down debts and resolve errors on your credit report.
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Consider ARM Loans: Adjustable rates may be lower in the short term.
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Increase Your Down Payment: Lower risk means better terms.
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Work with a Mortgage Broker: They can access exclusive investor deals.
Tax Benefits of Investment Property Mortgages
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Mortgage Interest Deduction
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Depreciation on the property
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Operating Expense Deductions (maintenance, insurance, etc.)
Securing the best mortgage rate for your investment property in 2025 can set the foundation for strong cash flow and long-term success. With interest rates expected to remain competitive, now is a great time to finance your next property.
Start Comparing Mortgage Rates Today
Don’t settle—compare offers, negotiate terms, and take advantage of low investor rates in 2025 to maximize your real estate returns.