Why investors refinance a rental property & how they do it
Table of Content Underwriting and Appraisal — Create equity How do I compare investment and rental property mortgage rates? — Obtain the necessary paperwork Local Refinance Lenders The 30-year fixed-rate mortgage is 20 basis points lower than one week ago and 323 basis points higher than one year ago. One drawback of refinancing is closing expenses that roll into the loan principal. These can amount to thousands of dollars, usually around 2% of the loan amount. The interest could outweigh any savings you might have realized from refinancing you will have to pay. However, variables like changes in interest rates and the state of the credit market often have an even more significant impact on a borrower’s capacity to refinance. If interest rates rise over the long term, an adjustable-rate mortgage can become a nightmare. Investors can get protection from impending interest rate increases by locking in a fixed rate. Regardless of present market condition, a fixed-rate mortgage gua