Another type of property that loans are issued for are investment properties. These mortgages generally carry higher interest rates than owner-occupied home mortgages. The main reason for this is that the borrower is not living in the property, and there is not as much of an incentive to maintain the home at its current condition. This makes the lender a little wary when it comes to lending the money. If you have not been in the rental business for more than two years, you may get an even higher rate, or be forced to use an ARM.