Do You Pay More In Interest When You Buy A Duplex?

dollar sign with a pencilOne of the most common questions I get is, “What’s the interest rate on a duplex?”

And as I do with so many of my answers, I always begin with, “It depends”.

If you plan to live in the duplex, your interest rate will be exactly the same as it would be if you were buying a single family home to live in.

However, if you’re purchasing the property strictly as an investment, your interest rate will be anywhere from one to three percent higher.

If, for example, the going rate is five percent on single family homes, expect to pay anywhere from six to nine percent interest on an investment property.

Of course, the interest rate each person qualifies for is determined by a number of factors, not the least of which is credit scores.