Should we refi already???

[Joe Garretson]

We closed on our first property on 12/4/23, so like 45 days ago. We put 20% down on a $140,000 purchase and have a conventional 30yr at 8.5%. We don't make our first payment until Feb 1 but I believe rates have dropped significantly since we purchased. The house is rented on an 18mo lease through June 2025. The DSCR on the current loan is 1.5. With taxes, insurance and prop mgmt we're still cashflowing.

Question is: should we refi already? Wait in the hopes that rates drop further this summer?

[Jason Wray]

Joe,

You cannot refinance until you have 6 months title seasoning. You could start the application process in May to close in June but by then the rates should be much better.  When you purchase a home and pay in "All cash" or use a line of credit there is "No 6 months wait".  Having a loan/mortgage causes the 6 month wait.