Mortgage rates for investment properties:

[clipperskipper]

With mortgage rates at ridiculous lows I plan to refinance at least one investment property. One property in particular is a single family home which we purchased in 2008,

with a 30 year fixed at 6.50%. I have spoken with a couple of banks and brokers who have explained to me that the lending rules have changed, essentially this is

the product, e.g. 30 year fixed, no points, and this is the rate, e.g. 4.0%.

What I am having a problem with is the fact that the banks want a higher rate due to the fact that this is an investment property, and a refinance, so the rate is 4.375%, vs. 3.75 that I was quoted this a.m. for a primary residence. My median Beacon score is 807, and I have no other debt. At which poiint, if ever, will the playing field be level?

[Jazzzy]

Loans are priced for risk....so the interest rates will never be equal between owner-occupied properties and rental properties.

If you couldn't make payments on both properties, which would you let go? The home you and your family live in? Or the rental property?

Rates are higher on investment properties because that is the property that most people would sacrifice first.