Looking Past Headline Interest Rates on Rentals
Draft placeholder copy —Conventional investment property loans carry steep Loan-Level Price Adjustments (LLPAs) from Fannie Mae and Freddie Mac unless you put 25%–40% down. Surprisingly often, a well-priced wholesale DSCR loan lands remarkably close to conventional investment pricing—especially when factoring in upfront points.
The biggest difference investors must watch on DSCR loans is the prepayment penalty structure (typically 1-year to 5-year step-downs).
Questions We Walk Through on Every Rental Quote
- Do you plan to refinance within 12–24 months if Treasury yields fall, and if so, how much does a shorter or zero prepayment penalty change the rate?
- Are you buying a 2-to-4 unit property where 2026 high-balance county loan limits unlock better leverage?
- Does keeping the mortgage off your personal DTI calculations help you qualify for your next primary home upgrade?
Bottom-Line Takeaway
Always match your prepayment window to your expected hold/refinance horizon before locking an investment property loan.
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