Refinancing Investment Properties

[Amanda Ferguson]

We have a few investment properties, all of which will need to be refinanced in the next year or two as they were purchased with 5 year interest only loans. They dont need rehab and all have long term renters in place.

What do most investors usually refiance with? Traditional loans dont usually work with investment properties, as far as I have seen.

Plus it seems like most refinance and even HELOC loans I have found for investment properties are running around 15-20% interest. Is that normal? Is that really what other investors have for their mortgage rate?

Needing some advice and direction please and thank you!

[Andrew Zamboroski]

Quote from @Amanda Ferguson:

We have a few investment properties, all of which will need to be refinanced in the next year or two as they were purchased with 5 year interest only loans. They dont need rehab and all have long term renters in place.

What do most investors usually refiance with? Traditional loans dont usually work with investment properties, as far as I have seen.

Plus it seems like most refinance and even HELOC loans I have found for investment properties are running around 15-20% interest. Is that normal? Is that really what other investors have for their mortgage rate?

Needing some advice and direction please and thank you!

There’s a few options:

1. conventional loan: this assumes your debt to income could support the mortgages
2. commercial loans: these would likely be similar to what you are in now. Usually a shorter term and amortization. The commercial bank or lender will look at your overall portfolio, liquidity, experience, and other factors.
3. DSCR loans: these have become extremely popular the past three years in particular. They are more flexible than both commercial and conventional loans, while still offering 30-year terms.

Most of our clients have opted for DSCR loans since rates have been on par in many instances and they’re usually much easier.