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Yolanda Estrada
  • Investor
  • Tucson, AZ
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Streamline Refinance or Downpayment for Investor Property

Yolanda Estrada
  • Investor
  • Tucson, AZ
Posted Jan 31 2015, 17:04

Hello BP Forum,

My husband and I are new homeowners and new Investors as well. We purchased our first home a year ago but didn't have the 20% down payment because we wanted to pay off my student loan immediately among other things and are currently paying mortgage insurance (PMI) as a result.

We would like to make our first investor purchase this year but I wanted to know what is best. Should we do a Streamline Refinance on our home since the interest rate is much lower that the 4.125 fixed rate we initially took, take the $15,000 equity from our home and put it towards the 20% down payment to get rid of the PMI and have a lesser monthly payment or use that $15,000 towards the purchase of our first investor property? I was thinking to refinance anyway and leave the $15,000 equity as a down payment for the investor property but would love to hear your suggestions!

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