Best Way to Refinance Investment Property
With today’s record low interest rates, there hasn’t been a better time to refinance investment property in recent memory. The best route to take advantage of these low interest rates is to compare rates online with a broker. When you use Mortgage Loans, you can have lenders compete for your business so you’ll know that you’re getting the best offer with the terms and conditions that you like. If you’re ready to look at rates, you can start by using the block to the left to see what you qualify for, otherwise find out more about the process below.
How to Start the Process
The biggest obstacle to getting mortgages in today’s market is finding a lender that will give you the terms and interest rate to make the property refinance worthwhile. Because of the difficult mortgage market and because people are more likely to default on investment properties than on regular home loans, they require larger down payments and charge slightly higher interest rates when refinancing or buying investment properties. So what does this mean for your investment property mortgage rates and any property investment strategies that you have?
First, it means that when you’re refinancing investment property you will need to keep more equity in the home than you would with a normal home loan. The equity you need to keep in the home is usually a sizable amount, so if you don’t have your original mortgage significantly paid off, applying for an investment property mortgage refinance might not be worth it, especially if your property has lost value.
Refinancing loans, regardless of if they are for your home or if they are investment property loans also require a sizable amount of different closing costs to get processed. If you want to have these costs pay for themselves, make sure that you plan to own the property for more than 10 years. Otherwise refinancing might be more expensive than simply keeping the existing loan that you have.
Finally, make sure that you’re ready for the loan by having a good credit score. Good credit scores generally require no late payments in the last year or two on any of your loans and a sizeable amount of your active revolving credit lines (AKA credit cards) paid off This will qualify you for the lower interest rates that will make your refinance more worthwhile.
Start Finding Loans from Available Lenders
Once you’ve gotten your credit in order and have a sizable amount of equity that you can keep in your property, it’s time to start looking for some mortgage lenders to see which ones offer you the best rates. You could do like people did in the past and spend days calling and meeting with local banks, but you likely won’t get the best rates possible and you’re wasting huge blocks of your time.
Instead, start your loan search by looking at an online mortgage broker. Check ot Rent is one of the best and most trusted and will allow you to compare the terms and costs of a loan with several different lenders to make sure that you’re getting the best deal for your money. And the best deal means more available cash flow from your business that you can use for a multitude of different personal or business uses. So, whether you have downtown or beach investment property, don’t wait and start the process today. Every day you waste waiting to refinance is another day you lose money!