Refinance rates for investment property

46 Replies

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

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

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.

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

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 !

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 !

@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

@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.

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

@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.

@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 👍