New to Real Estate · Las Vegas · Member since 2020 · 1 post · 0 votes
Hello all! First time poster, long time podcast listener.
So I’ve currently owned (and lived in) one home in Las Vegas for the last three years. I’m moving out of state and planning to turn my current primary home into a rental home.
My question is should I refinance it? Here’s why I ask:
My current loan is a VA loan with 4.50% interest rate at $1356.66 a month from USAA. I keep getting mail from USAA about refinancing my house with them. They claim I can get another VA loan for 2.250% at $851.22 a month.
I’d like to sell it a few years down the road. I guess I don’t know the pros and cons of refinancing. It almost sounds too good to be true. Thanks BP!
You don’t need a loan for the place you’ll be living out of state in the mean time?
You plan to close the sale of this property within 3 years to avoid turning a tax free sale in to a taxable one?
Is that long enough for the interest savings to more than make up loan costs if you sell in 1-2 years? (The payment difference isn’t savings, only the interest saved is of course.)
You’re 90% sure the value of the house will be higher in 2 years when you sell? (Unless you don’t have any unrealized tax free capital gains which is hard to believe in 2 years in vegas.)