Thinking of refinancing

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Thinking of refinancing

Kyle SchachsieckPro Member
Member since 2022 · 2 posts · 2 votes

Happy Holidays!

I am a fairly new homeowner (less than 2 years) and haven't began my investment property journey yet. We are interested in refinancing our VA loan if it is worth it. Current rate is 5.75 and credit scores are around 750. Loan amount is essentially unchanged since the loan is just under 2 years old.

I thought the lending process was absolutely obnoxious last time around so I was wondering if anyone had any good referrals or recommendations. If you google anything regarding mortgage rates or refinancing, you only see lending tree and rocket mortgage or some brokers that will send your information to 1000 people. I don't want to be fielding phone calls all day, everyday like last time around. Is there a way to make this process seem less like dealing with used car salesman or is that just they way it is?

Any tips or advise would be great! Thanks in advance and happy holidays again!

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
1y

I don't think it's worth it for you. With minimal equity it doesn't make sense, your rate seems good too compared to current ones

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
    1y

    I don't think it's worth it for you. With minimal equity it doesn't make sense, your rate seems good too compared to current ones

    2Reply
  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    1y

    Completely agree with @Caleb Brown. You won't get a better deal until rates go down further. Better to concentrate on decreasing expenses and saving for now. 

    1Reply
  • Brandon Croucier
    Lender · Lake Havasu City, AZ · Member since 2024 · 700 posts · 285 votes
    1y

    Now is not the time to refi for you, keep an eye on the MBS market, when you see a 1-2% drop thats when you should refi.

    What state are you in?

    0Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    Are you trying to refi to pull out equity or something else? I'm not understanding the purpose of wanting to refi.

    As for the phone calls, look up trigger leads and how to opt out. Also, dont work with big internet lenders like rocket, lending tree, etc. Find someone local or who specializes in working with investors. Tons of lenders on here.

    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    1y
    Quote from @Kyle Schachsieck:

    Happy Holidays!

    I am a fairly new homeowner (less than 2 years) and haven't began my investment property journey yet. We are interested in refinancing our VA loan if it is worth it. Current rate is 5.75 and credit scores are around 750. Loan amount is essentially unchanged since the loan is just under 2 years old.

    I thought the lending process was absolutely obnoxious last time around so I was wondering if anyone had any good referrals or recommendations. If you google anything regarding mortgage rates or refinancing, you only see lending tree and rocket mortgage or some brokers that will send your information to 1000 people. I don't want to be fielding phone calls all day, everyday like last time around. Is there a way to make this process seem less like dealing with used car salesman or is that just they way it is?

    Any tips or advise would be great! Thanks in advance and happy holidays again!


    Here is the chart of VA 30 year fixed rates: https://fred.stlouisfed.org/series/OBMMIVA30YF   You will see that current VA rates are right around around 6.5%.  So, as stated above there would be no reason or advantage to refinance. And quite frankly, there might not be a benefit of refinancing for a while.  (being that I am lender I wish that was not the case but want to be honest about reality as well). 

    Hurst Real Estate, INC4.986 Reviews
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    1Reply
  • Kyle SchachsieckPro Member
    OP
    Member since 2022 · 2 posts · 2 votes
    1y

    Thank you all for the information and additional resources! My goal of refinancing was simply lowering our monthly spending to reallocate towards future investments. I was hoping the rate cuts in the last 12 months would have had more of an impact on mortgage rates. 

    We are in the Tampa, FL area. 

    1Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    1y
    Quote from @Kyle Schachsieck:

    Thank you all for the information and additional resources! My goal of refinancing was simply lowering our monthly spending to reallocate towards future investments. I was hoping the rate cuts in the last 12 months would have had more of an impact on mortgage rates. 

    We are in the Tampa, FL area. 


     Common misconception that the fed funds controls mortgage rates but that is not how it works.  Here is my post from back in oct: https://www.biggerpockets.com/forums/49/topics/1210614-the-f...

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    0Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y
    Quote from @Kyle Schachsieck:

    Thank you all for the information and additional resources! My goal of refinancing was simply lowering our monthly spending to reallocate towards future investments. I was hoping the rate cuts in the last 12 months would have had more of an impact on mortgage rates. 

    We are in the Tampa, FL area. 

    Gotcha. I would not expect a meaningfully lower rate and pmt for likely several years.
    0Reply
  • Deborah Wodell
    Lender · Sanford, NC · Member since 2024 · 359 posts · 123 votes
    1y

    Hey Kyle, refinancing might not provide significant benefits at the moment, especially with rates where they are. Since your goal is lowering monthly payments for better cash flow, it might be worth focusing on reducing expenses elsewhere or exploring other investment strategies. Keeping an eye on the market for a rate drop could also help you find a better time to refinance. I'd suggest keeping an eye on the MBS market, as suggested by others, and possibly speaking with a few lenders who specialize in VA loans when the timing is right. Best of luck with your journey!

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    @Kyle Schachsieck I’m close by the Tampa area. You have a good rate compared to current rates. Sit tight and wait till rates drop. When they do, feel free to reach out. 

    [email protected]619-456-8311
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