Rental property mortgages and traditional mortgages are very similar. Instead of investing in a property with the intent of living in it, the borrower plans to rent the property out to tenants. Rental property mortgages come in different forms such as second homes, vacation homes with renters year-round, or just at specific times of the year. And just like traditional mortgages, borrowers can choose from fixed or variable-rate mortgages.

Regardless of some of the additional restrictions and qualifying standards, rental properties are popular as they allows homeowners to access to another stream of income. It allows borrowers the opportunity to expand their assets and add an extra stream of income to increase their net worth. Investing in rental properties provides the opportunity to constantly profit.

They also some incentive for rental property mortgages such as a greater payment flexibility by being able to extend of the amortization period.