Refinance rates for investment property

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Refinance rates for investment property

NIcholas Hamel
Member since 2019 · 187 posts · 74 votes

Hey everyone, I see that rates are really low lately. I have an investment property currently at 4.5%. I am seeing rates as low as in the 2s. Are rates this low for investment properties too or is this just for owner occupied? If so does anyone hVe a “go to” lender they can recommend? Thanks everyone!

Nick

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Bradley Padula
Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
5y

I closed on a cash out refi on one of my SFH investment properties in MA last week, no points, 75% LTV with a 30 year fixed 3.375% rate, locked the rate 1.5 months prior to closing. My rate prior to refi was 4.375% so it was a win-win to lower my monthly payment and pull some cash out

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  • Eric Johnson
    Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    5y

    You can get down to about 3.25 - 3.50% on investor occupied refis if you pay 1.50 - 2 points. You'd have to do the math to see if that's worth it. Most of the benefit is geared for owner occupied purchases right now. GL

    3Reply
  • Andrew Weiner
    Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes
    5y

    All the advertised rates that you see are for owner occupied and ideal circumstances (credit, condition, value, etc.). Those rates also do not include closing costs which are several thousand dollars minimum. Right now what I have heard from lenders is that they are being very conservative on rental properties (75% LTV) and a higher than normal spread on the rates (used to be 1% extra if it was a rental). Unless its a high value property it most likely won't pay (or pay much) to refinance. If you are pulling money out at the same time then that is a completely different story.

    2Reply
  • NIcholas Hamel
    OP
    Member since 2019 · 187 posts · 74 votes
    5y

    @Eric Johnson. Thanks alot eric! Big help

    0Reply
  • NIcholas Hamel
    OP
    Member since 2019 · 187 posts · 74 votes
    5y

    @Andrew Weiner. Good advice andrew i appreciate it.

    0Reply
  • Bradley Padula
    Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
    5y

    I closed on a cash out refi on one of my SFH investment properties in MA last week, no points, 75% LTV with a 30 year fixed 3.375% rate, locked the rate 1.5 months prior to closing. My rate prior to refi was 4.375% so it was a win-win to lower my monthly payment and pull some cash out

    6Reply
  • Bobby Naidu
    Real Estate Investor · Los Angeles, CA · Member since 2017 · 4 posts · 2 votes
    5y
    Originally posted by @Bradley Padula:

    I closed on a cash out refi on one of my SFH investment properties in MA last week, no points, 75% LTV with a 30 year fixed 3.375% rate, locked the rate 1.5 months prior to closing. My rate prior to refi was 4.375% so it was a win-win to lower my monthly payment and pull some cash out

    Bradley,

    Would you mind sharing this lenders info? Is it a nationwide lender or someone local? I'm in LA and have a SFH rental with about 1.5M equity that I want to unleash for purchases next year. Thanks for sharing the details of your refi !

    1Reply
  • Bradley Padula
    Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
    5y

    Hey Bobby, more of a local lender (MA / East coast). I don't think I could get near that rate if I were to try to do the same refi today, rates have gone up a bit. I would recommend calling as many local lenders as you can and then you'll know your options! Send me a private message if you want to jump on a call sometime happy to help. Best of luck!

    Originally posted by @Bobby Naidu:

    Bradley,

    Would you mind sharing this lenders info? Is it a nationwide lender or someone local? I'm in LA and have a SFH rental with about 1.5M equity that I want to unleash for purchases next year. Thanks for sharing the details of your refi !

    0Reply
  • Edward Dawson
    Rental Property Investor · Phoenix, AZ · Member since 2019 · 26 posts · 47 votes
    5y

    @NIcholas Hamel Lowest I've seen on purchase is 3.5% with 20% down, no points, $500 lender fees with Stifel.  I think refi is higher however.

    0Reply
  • NIcholas Hamel
    OP
    Member since 2019 · 187 posts · 74 votes
    5y

    @Bradley Padula

    Thats awesome. How much did you save a month? My rate right now is 4.5

    1Reply
  • NIcholas Hamel
    OP
    Member since 2019 · 187 posts · 74 votes
    5y

    @Edward Dawson. Awesome thank you

    0Reply
  • Bradley Padula
    Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
    5y

    @NIcholas Hamel The amount saved will vary based on loan size and current interest rate vs new interest rate, and if you are doing a cash out refi how much higher your new loan amount is compared to your existing initial loan amount. I use a site like the below link to estimate savings.

    Take your current (initial) loan amount and interest rate and you'll see the P&I in the calculator will be very close to your actual P&I payment. From there, you can play around with what your new P&I payment would be across different rates if you refi'd. 

    https://www.bankrate.com/calculators/mortgages/mortgage-payment-calculator.aspx

    0Reply
  • Kao Saeteurn
    AZ · Member since 2018 · 78 posts · 40 votes
    5y

    @NIcholas Hamel

    I did a cash out refinance back in July and pulled out 60% LTV at 3.5% with 1.25 points.

    I just closed on a SFH with 25% down for 2.99 for an investment rate, no points.

    I’m in AZ though so your rates will vary.

    0Reply
  • Dustin Kube
    Investor · Scottsdale · Member since 2019 · 6 posts · 4 votes
    5y

    @Bradley Padula who was your lender?

    0Reply
  • Bradley Padula
    Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
    5y

    @Dustin Kube 

    https://www.radiusgrp.com/loan...


    0Reply
  • NIcholas Hamel
    OP
    Member since 2019 · 187 posts · 74 votes
    5y

    @Bradley Padula

    Awesome ill def use this. Thank you brad

    0Reply
  • Adriel Hsu
    Investor · Beaumont, TX · Member since 2016 · 171 posts · 277 votes
    5y

    Anyone know where I can refi a small apartment complex (Under $1M loan amount)?  Currently at 5% on 25 yr am from 2 years ago, hoping to get it down under 4% and over 30 yr  AM

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    5y

    I am quoting people in the low to mid 3's depending on Fico Score and LTV, in the state of Florida and Georgia for a rate/term refinance.

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
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    1Reply
  • Bradley Padula
    Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
    5y

    Happy to help Nick, reach out to me anytime!

    Originally posted by @NIcholas Hamel:

    @Bradley Padula

    Awesome ill def use this. Thank you brad

    0Reply
  • Luan Oliveira
    Rental Property Investor · Providence, RI · Member since 2018 · 76 posts · 64 votes
    5y

    @NIcholas Hamel

    I'm closing on a purchase this week of an investment property. 3 units. I was able to get 3.375 with 0 points from a local lender. Not sure how it would turn out if it was a Refi, but I'd imagine it would have probably been in the same ballpark. I'd shop around and maybe ask some agents! Mine came as a referral from an agent.

    1Reply
  • Bradley Padula
    Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
    5y

    @Luan Oliveira congrats on your purchase! I see your in RI and I'm local right over in MA, mind sharing what lender you used? I'm always looking to make new lender connections 

    0Reply
  • Luan Oliveira
    Rental Property Investor · Providence, RI · Member since 2018 · 76 posts · 64 votes
    5y

    @Bradley Padula Christopher Craig at BankFive. Very smooth transaction. Highly recommend.

    2Reply
  • Bradley Padula
    Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
    5y

    @Luan Oliveira thanks!

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @NIcholas Hamel

    Generally, owner occupied property get lower interest rate compared to Investment Properties.

    I'm in the middle of a Refi for one of my Rental Property in Houston, Texas and I got a 2.75% for 15years mortgage using a Local Lender.

    I'm paying around $1600 for points.

    Get a great lender and do the math. If it make sense, go for it.

    Goodluck 👍

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
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  • Marco Anemone
    Bolingbrook Illinois · Member since 2018 · 50 posts · 33 votes
    5y

    I just refinance 3 single family houses (rentals) last week at 3%, 30 year term no points. Closing on a single family investment property tomorrow, also at 3% 30 year term, no points. And refinancing should be completed by weeks end on 5 more single family rentals. All are 75% loan to value and all are in Illinois. 

    2Reply
  • Tuan Tran
    Member since 2018 · 14 posts · 1 vote
    5y

    @NIcholas Hamel

    I recently considered refi to 3.5 from 4.5, saving ~$70/ month, but would take over 7 years to recoup after factoring closing cost. That is quite a bit of time and I’m not sure whether or not I would still have the property.

    I elected to pay more toward principle instead. You’ll definitely have to make sure it aligns with your strategy.

    tt

    1Reply
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