Rate Questions
Understanding interest rates and getting the best deal.
Q: What are current DSCR loan rates?
A: As of 2026, DSCR rates typically range 7.0%-9.5%:
| Credit Score | Rate Range |
|---|---|
| 760+ | 7.0%-7.75% |
| 720-759 | 7.25%-8.0% |
| 680-719 | 7.75%-8.5% |
| 660-679 | 8.25%-9.0% |
Rates change daily. Get personalized quote at moneymatcher.io
Q: Why are investment property rates higher?
A: Lenders see investment properties as higher risk:
- No personal stake (you don't live there)
- Vacancy risk
- Higher historical default rates
Typical difference: 0.5-1% higher than primary residence.
Q: What affects my interest rate?
A: Major factors:
- Credit score - Biggest impact
- DSCR ratio - Higher = better
- LTV - More down payment = better
- Property type - SFR best
- Prepayment penalty - Longer = lower rate
Q: Can I lock my rate?
A: Yes! Rate locks guarantee your rate for 15-60 days, protecting you from market increases.
Q: What if rates drop after I lock?
A: Options:
- Float-down provision - Some lenders offer this
- Break and re-lock - May have costs
- Accept locked rate - You agreed it was good enough
Q: How do I get the best rate?
A:
- Improve credit to 720+
- Put down 25%+
- Choose property with DSCR 1.25+
- Shop multiple lenders
- Consider rate buy-down
Q: What are points and should I pay them?
A: Points are upfront fees to reduce rate.
- 1 point = 1% of loan = ~0.25% rate reduction
- Break-even: typically 5 years
- Pay points if holding 5+ years
Q: Fixed vs ARM - which is better?
A:
| Fixed | ARM |
|---|---|
| Rate never changes | Lower starting rate |
| Predictable payments | Rate can increase |
| Best for long-term | Best for short-term |
Q: Can I refinance later for better rate?
A: Yes! Consider refinancing when:
- Rates drop 1%+
- Credit improves
- Property appreciates
- Check prepayment penalty first
Q: What's the difference between rate and APR?
A:
- Rate: Cost of borrowing (for monthly payment)
- APR: Total cost including fees (for comparison)
Use APR to compare lenders; use rate for payment calculation.
Q: Are there rate discounts?
A: Yes!
| Factor | Savings |
|---|---|
| Higher down payment | 0.125-0.25% |
| Higher DSCR | 0.125-0.25% |
| Longer prepayment penalty | 0.25-0.5% |
| Repeat borrower | 0.125-0.25% |
Q: Do rates vary by property type?
A:
| Property Type | Rate Premium |
|---|---|
| Single-family | Base rate |
| 2-4 unit | +0 to +0.25% |
| Condo | +0.125-0.5% |
| Short-term rental | +0.25-0.5% |
Rate Quick Reference
┌─────────────────────────────────────────────────────┐
│ DSCR RATE FACTORS │
├─────────────────────────────────────────────────────┤
│ IMPROVES RATE: INCREASES RATE: │
│ ✅ Credit 720+ ❌ Credit under 680 │
│ ✅ DSCR 1.25+ ❌ DSCR under 1.0 │
│ ✅ LTV 75% or less ❌ LTV over 75% │
│ ✅ Single-family ❌ Non-warrantable condo │
│ ✅ Longer PPP ❌ No prepayment penalty │
└─────────────────────────────────────────────────────┘
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