How Are You Modeling DSCR Refinance Savings in Today’s Rate Environment?

[Jerry Phillips]

I’ve been running different refinance scenarios for stabilized rental properties and noticed something interesting.

Many investors focus only on rate reduction, but when you extend term, the “lifetime savings” picture can change significantly depending on:

• Remaining amortization
• Current balance vs new term
• Cash flow impact vs total interest paid
• DSCR improvement relative to LTV

In some cases, the refinance improves DSCR and monthly cash flow but doesn't dramatically change total lifetime interest unless the rate delta is meaningful.

I’ve built a model to compare:

– Current PITI vs new PITI
– DSCR impact
– LTV after closing costs
– Lifetime cost difference over remaining term

Curious how others here are evaluating refinance scenarios.

Are you prioritizing:

1. 1- Cash flow improvement

2. 2- Rate arbitrage

3. 3- Equity extraction

4. 4- Portfolio stabilization

Would love to hear how others are modeling it.