Refinance out rates

[Jay Mersfelder]

What are the rates people are getting to refinance out on there rental properties, and how are you using? I'm wanting to refinance out on first rental but haven't found any decent rates..

[Ned Carey]

@Carini RochesterHow do you define a "Decent Rate"?  Rates are very low right now historically. Yes they are rising but they are still low. 

Last I heard the lender we used was quoting 5.25%.  That is high relative to what you could have gotten for the best deals 8 months ago, but it is still low relative to what you will be paying over your investing career.

Stop focusing on how much money cost. Focus on how much your return is. Small differences in the rate just don't make much difference.  the difference in 5% vs 5.5% on  a $150k loan for 30 years is $45.45 a month. If it takes you a month of shopping to find the better rate it will take about 2.5 years to make up the 1 months lost rent.

In today's environment 1 month of shopping might wind you up with a higher rate!