Rate Details*
Loan Program:  
Monthly Payment:  
APR:  
Rate:  
Points  :
Points: Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
 
Total Lender Fees:  
Loan type:  
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Monthly Housing Payments

P & I
Principal & Interest: A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to the reduction of the principal balance.
Mortgage Insurance
Mortgage Insurance: The monthly cost for a policy that protects the lender in case you're unable to repay the full amount of the loan. It is typically required for loans that have a loan-to-value ratio between 80% to 100%.
(Estimated)
Property Tax
Property Tax: (Also called "Real Estate Tax.") Property taxes are government assessments on real estate property. With mortgage financing, the local, county or state tax assessment on real estate property is considered part of the monthly housing obligation and typically collected and set aside by the lender ...
(Estimated)
Homeowner Insurance
Homeowner Insurance: or also commonly called hazard insurance, is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.lender ...
(Estimated)
Homeowner Association Fee
Homeowner Association fee: (HOA) fees are funds that are collected from homeowners in a condominium complex to obtain the income needed to pay (typically) for master insurance, exterior and interior (as appropriate) maintenance, landscaping, water, sewer, and garbage costs.
(If Any)
Total Monthly Housing Payments

Lender Fees

Points
Points Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
Origination Fee
Origination Charge: A loan origination charge is a fee charged by the lender for evaluating, processing, and closing the loan.
Credit Report Fee
Credit Report Fee: Fee charged to obtain an applicant's credit history prepared by one or all of the three major credit bureaus. Used by lender to determine the borrower's creditworthiness.
Tax Service Fee
Tax Service Fee: A fee charged by the lender to cover the cost of retaining a tax service agency. These agencies monitor the property tax payments on the property and report the results to the lender.
Processing Fee
Processing Fee: A processing fee is a charge by the lender for clerical items associated with the loan. Examples of processing include loan set up, organization of loan conditions for underwriting, and preparing required disclosures for the borrower.
Underwriting Fee
Underwriting Fee: A fee charged by the lender to verify information on the loan application, authenticate the property's value, and perform a risk analysis on the overall loan package.
Wire Transfer Fee
Wire Transfer Fee: In most cases lenders wire funds to escrow companies to fund a loan. Commercial banks that perform this function will charge the lender so the fee is generally passed on to the borrower.
(If Any)
FHA Upfront Premium
FHA Upfront Premium: A fee paid in cash at the close of escrow or more commonly it is financed into the loan. These premiums are pooled together by the FHA and are used to insure the risk of borrower default on FHA loans. FHA upfront premiums are prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of the loan, they are entitled to a partial refund of the FHA upfront premium paid at loan inception.
(If any)
VA funding Fee (If any)
Flood Fee
Other Fees

Other fees could be either additional Administrative Fees that a lender charges or it could be a Flat Fee to cover all lender charges such as: (Origination Fees, Points, Underwriting and Processing Fees, Credit Reports and Tax Service Fees)

The flat fee does not include prepaid items and third party costs such as appraisal fees, recording fees, prepaid interest, property & transfer taxes, homeowners insurance, borrower's attorney’s fees, private mortgage insurance premiums (if applicable), survey costs, title insurance and related services.

Total Lender Fees
*Actual rates and other information may vary. Sponsored results shown only include participating lenders. The information you enter on this page will only be shared with lenders you choose to contact, either by calling the phone number or requesting a quote.
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Non-Owner Occupied Mortgage Overview

Non-Owner Occupied Mortgage Overview

    A mortgage on property in which you do not live is considered a non-owner occupied mortgage.  Investment properties such as a property with up to four units that you buy to generate rental income are considered non-owner occupied properties.  The table below shows investment property interest rates and fees for lenders in your area.  Click on a lender logo or green arrow to contact a lender about a non-owner occupied mortgage.  Below the rate table we review the differences between owner occupied and non-owner occupied mortgages.

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    Rate Details*
    Loan Program:  
    Monthly Payment:  
    APR:  
    Rate:  
    Points  More Info:
    Points: Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
     
    Total Lender Fees:  
    Loan type:  
    Property Value:  
    Loan to Value:  
    Credit Rating:  
    Date Submitted:  
    Monthly Housing Payments
    P & I More Info
    Principal & Interest: A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to the reduction of the principal balance.
    Mortgage Insurance More Info
    Mortgage Insurance: The monthly cost for a policy that protects the lender in case you’re unable to repay the full amount of the loan. It is typically required for loans that have a loan-to-value ratio between 80% to 100%.
    (Estimated)
    Property Tax More Info
    Property Tax: (Also called "Real Estate Tax.") Property taxes are government assessments on real estate property. With mortgage financing, the local, county or state tax assessment on real estate property is considered part of the monthly housing obligation and typically collected and set aside by the lender ...
    (Estimated)
    Homeowner Insurance More Info
    Homeowner Insurance: or also commonly called hazard insurance, is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of its use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.lender ...
    (Estimated)
    Homeowner Association Fee More Info
    Homeowner Association fee: (HOA) fees are funds that are collected from homeowners in a condominium complex to obtain the income needed to pay (typically) for master insurance, exterior and interior (as appropriate) maintenance, landscaping, water, sewer, and garbage costs.
    (If Any)
    Total Monthly Housing Payments
    Lender Fees
    Points More Info
    Points Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
    Origination Fee More Info
    Origination Charge: A loan origination charge is a fee charged by the lender for evaluating, processing, and closing the loan.
    Credit Report Fee More Info
    Credit Report Fee: Fee charged to obtain an applicant’s credit history prepared by one or all of the three major credit bureaus. Used by lender to determine the borrower’s creditworthiness.
    Tax Service Fee More Info
    Tax Service Fee: A fee charged by the lender to cover the cost of retaining a tax service agency. These agencies monitor the property tax payments on the property and report the results to the lender.
    Processing Fee More Info
    Processing Fee: A processing fee is a charge by the lender for clerical items associated with the loan. Examples of processing include loan set up, organization of loan conditions for underwriting, and preparing required disclosures for the borrower.
    Underwriting Fee More Info
    Underwriting Fee: A fee charged by the lender to verify information on the loan application, authenticate the property’s value, and perform a risk analysis on the overall loan package.
    Wire Transfer Fee More Info
    Wire Transfer Fee: In most cases lenders wire funds to escrow companies to fund a loan. Commercial banks that perform this function will charge the lender so the fee is generally passed on to the borrower.
    (If Any)
    FHA Upfront Premium More Info
    FHA Upfront Premium: A fee paid in cash at the close of escrow or more commonly it is financed into the loan. These premiums are pooled together by the FHA and are used to insure the risk of borrower default on FHA loans. FHA upfront premiums are prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of the loan, they are entitled to a partial refund of the FHA upfront premium paid at loan inception.
    (If any)
    VA funding Fee (If any)
    Flood Fee
    Other Fees More Info

    Other fees could be either additional Administrative Fees that a lender charges or it could be a Flat Fee to cover all lender charges such as: (Origination Fees, Points, Underwriting and Processing Fees, Credit Reports and Tax Service Fees)

    The flat fee does not include prepaid items and third party costs such as appraisal fees, recording fees, prepaid interest, property & transfer taxes, homeowners insurance, borrower’s attorney’s fees, private mortgage insurance premiums (if applicable), survey costs, title insurance and related services.

    Total Lender Fees
    *Actual rates and other information may vary. Sponsored results shown only include participating lenders. The information you enter on this page will only be shared with lenders you choose to contact, either by calling the phone number or requesting a quote.
    Compare Non-Owner Occupied Mortgage Rates
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    Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Click here for more information on rates and product details.
  • Owner Occupied Mortgage Overview
  • An owner occupied property is the primary residence in which you live.  A property with up to four units is considered owner occupied as long as the owner lives in one of the units.  Second homes, such as vacation homes that resides outside of the county in which you live, are also considered owner occupied properties.  Some borrowers may decide to move into a non-owner occupied property, such as an investment property.  The borrower must live in the property for at least a year for the property to be re-classified from non-owner occupied to owner occupied.

  • Differences Between Owner Occupied and Non-Owner Occupied Mortgages
  • Non-owner occupied mortgage rates are typically 0.25% - 0.50% higher than owner-occupied mortgage rates.  Closing costs, such as lender, title, settlement agent and appraisal report fees, for non-owner occupied mortgages are also usually higher.  Most lenders require that borrowers contribute a larger down payment when obtaining mortgages for investment properties, especially for larger, jumbo mortgages.  Lenders may require the borrower to make a down payment of at least 25% of the purchase price for a non-owner occupied property, for a loan-to-value (LTV) ratio of 75% or less, although some lenders may only require a down payment of 20%.  The lower the LTV required by the lender, the greater the down payment the borrower is required to make.

    As a general rule, a buyer must typically make a down payment of at least 33% for a rental investment property to be break-even or profitable on a cash-flow basis.  If the investment property is not profitable, any losses are included in the monthly debt figure used to calculate your debt-to-income ratio, which makes it more difficult to qualify for mortgage.  For example, if you have $500 in total personal monthly debt from credit cards, auto and other loans and the property you want to buy loses $200 per month in cash flow, the lender will use $700 as your monthly debt figure to determine what size mortgage you qualify for.  The higher your monthly debt, the lower the mortgage amount you qualify for.  You must generate sufficient personal income from other sources, after factoring in any monthly loss from the property, to qualify for a non-owner occupied mortgage.

    Additionally, most lenders require you to have a certain amount of money in reserve when you get a mortgage for an investment property.  The reserve requirement depends on the number of properties you have financed with a mortgage.  For mortgaged investment properties one through three, you are typically required to have savings in reserve equal to two months of total monthly housing expense for each investment property.  For mortgage investment properties four through nine you are typically required to have savings in reserve equal to six months of monthly housing expense for each investment property.

    Mortgages on owner occupied and non-owner occupied properties are treated differently for tax purposes.  According to the U.S. tax code, mortgage interest expense for owner occupied properties (on mortgage amounts up to $1,000,000) can be deducted from your gross income, which provides a significant tax benefit.  The mortgage tax deduction benefit does not apply to non-owner occupied properties which is an important consideration for borrowers.  Be sure to consult a tax professional to understand the tax rules that apply to non-owner occupied mortgages and investment properties.   

    Finally, most conventional and government-backed low or no down payment mortgage programs such as the FHA, VA and USDA home loan programs as well as the Fannie Mae MyCommunityMortgage Program only apply to owner occupied properties.  You can use all these programs except the USDA program; however, to purchase properties with up to four units but at least one of the units needs to be owner occupied.

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