Non Owner Occupied Mortgage RatesMortgage interest not occupied by the owner
However, from a lender's point of vision, what is the distinction between an owner-occupied house and an unoccupied house? Mortgages are priced and have special subscription policies in place on the basis of perception of risk. Real estate that is not used by the borrowers is termed real estate for investments and is more likely to fall into arrears than owner-occupied property.
Mortgage loans on houses used by the debtor as his main domicile will be the least in arrears and will result in enforcement. The reason for this is that a debtor faced with difficult periods is more likely to move away from a rented home than from the house in which he and his wife and children live.
A third type of booking is the holiday apartment. Mortgage rates for these real estate assets are similar to those for owner-occupied houses, but their locations must make good holiday cottages. In order to offset the higher level of enforcement risks, the rates for residential mortgage rates are higher (around .375%) than for residential mortgage rates.
Furthermore, unused credit requires a higher down payments - usually at least 20%. It' s best if all those concerned are open about the occupation of the real estate, and your broker will work with you on the best possible finance. Compute your montly payments with the current finance costs, PMI, risk coverage and real estate tax.
Ever wonder how much you owe for every $1,000 of your mortgage loans?