Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 12 months ago on . Most recent reply

User Stats

2
Posts
2
Votes
Amanda Ferguson
2
Votes |
2
Posts

Refinancing Investment Properties

Amanda Ferguson
Posted

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!

Most Popular Reply

User Stats

259
Posts
69
Votes
Replied
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. 

Loading replies...