Question:

How to refinance a rental property?

Answer:

If you are trying to refinance a rental property, you will find out different rules apply than when refinancing a residential property.

Firstly, your interest rates will be higher (1% or more) on a rental property refinance than they would be with on a residential refinance.

Secondly, if you are self-employed and doing a stated income, you would get additional boost of the rate higher than the one for salaried borrowers going stated income, even if your credit score is 700 and over.

If you need a cash-out refinance, refinancing your primary residence will get you a better loan than a rental property refinance.

Your best shot when refinancing a rental property is to go to the lender or bank holding one of your mortgage loans (if any). If they are still holding your loan, you may do best with them. Or, try to locate a lender specialized in extending loans to real estate investors like yourself.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: