Cash out Refi

[Anthony Zotto]

Hello! I am running some numbers on potentially cash-out refinancing a rental house. Is the rate usually the same as an investment property loan? Or is it higher? 

Thanks!

AZ

[Devin Peterson]

Quote from @Anthony Zotto:

Hello! I am running some numbers on potentially cash-out refinancing a rental house. Is the rate usually the same as an investment property loan? Or is it higher? 

Thanks!

AZ

Investment rental DSCR loans are on average 150 bps to 300 bps higher than standard consumer interest rates. They tend to be higher because these loans are seen as higher risk than owner-occupied homes. Your end rate will largely depend on the DSCR score, LTV, and your credit score. Happy to connect and help answer any further questions!