refinancing an investment property
Maximize the return on your investment property.
why should I refinance an investment property?
Two words: cash flow. With interest rates as low as they are now, refinancing an investment property could be a smart decision for your bottom line.
what loan program is best for refinancing my investment property?
That depends on your situation, but here are a few options:
- A rate and term refinance is the standard go-to for refinances. It should help you get a lower interest rate and allow you to adjust the term of your loan.
- A cash-out refinance might be worth considering if you’re interested in taking money out of one property to put toward another.
Keep in mind, though, that some programs, like VA loans are only available for primary residences.
okay. what else should I know?
Refinancing an investment property isn’t exactly the same as refinancing a primary property. There are some extra qualification requirements you should know about:
Higher LTV requirements. LTV stands for loan to value ratio. The higher the percentage, the riskier you are to a lender. Most lenders require investment properties to have an LTV of 75%, or even lower in certain situations.
Higher interest rates. Lenders take risk into consideration when they do the math on your interest rate. Often, the rate they offer for a second property will be higher than it might be for a primary residence.
Other requirements. Some lenders have other requirements, like six months or more of mortgage payments already in the bank, or documentation that proves rental income.
Let us help you find the perfect loan for you.
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