Should I refinance my investment property.
Hello everyone,
This is my first time asking for advice. I have an investment property which has 57,000 remianing on the loan at 3.25%. My payment is 551 a month. I cash flow $300 on the property. I wanted to refinance my property to get 29K out of in order to pay off my 401k loans at 23k and 9k respectively. By doing this my my available cash per paycheck increasing by 450. THis would also allow me to qualify for more on the 203k fha loan I'm applying for on my next OOC duplex or triplex property. My refi loan would be a 5-6% on 95K. Is this a wise idea. Any advice would be greatly appreciated.
Most Popular Reply
@Wayland Willingham I would suggest paying those loans for your 401K because those can be long and drawn out! Take the advantage while you can, it also sets you up for that extra cash to help you build a quick emergency fund, or build capital quicker for the next deal!
If the interest goes up, as it is in this scenario, I would suggest to analysis the refi and see if anyone else can get you a better rate. Shop for a rate if you have not done so, and you can make some better moves with the rate and paying off those loans for future investments!
- Peter Mckernan
