A second-lien DSCR works too, but rates are usually higher.No tax hit when you pull the equity.

What it potentially means:For the Federal Reserve, sticky inflation like this complicates the case for rate cuts.

@Chris SeveneyThat for a 6.5 rate.

The unemployment rate hit 4.4%, the highest since 2021, driven by higher labor force participation rather than mass layoffs.

Plus I'm locking in paying down an interest rate of only 4% as opposed to the uncertainty of what interest rates will be in 2031. 

The interest rate is at 3% on the home and doing a cash out refi would eliminate that low interest rate.

I have several criteria but if I had to narrow is down to my top three. it would be1 - School ratings above 82 - Safety (crime, or the lack thereof)3 - The numbers - Property prices, rent pricesIf the school ratings and numbers are not what I want, that city is immediately eliminated.

Use the following baseline info.Balance $1,000,000Int rate   6%25 year amortYear Equity buildup1  22,0002  44,0005    122,00010   288,00015   511,000Above is project to date equity buildup $511,000 after year 15. 

Albeit the rate was a bit higher since the client's DSCR was very tight on a portfolio to begin with.

For SFH or duplex, most of them usually charge a flat rate ($100 - $150 per month).