As I shop for loans I have noticed that the interest rates for
Investment Property are quite higher than the rates for Primary
Residence. Is it common for consumers to book loans as "Primary
Residence" to get the interest rates they desire, then turn around and
rent out the property?
What are the ramifications of doing something like this?
In my experience these rates are negotiable. Mortgage lenders have told me
that I would have to pay a higher interest rate because a loan is for
investment property. But when I expressed my intention to look around and
try other lenders, they offered to put it through as a primary residence at
the lower rate.
