DSCR Refinance Quote

[Kenneth Ye]

Hi Guys,

I have a SFH in AZ that currently has a 8.25% DSCR 5 year prepayment penalty of 15k. I have a 800+ credit score and a one year lease in place that is 1.00 of the PITI. Current loan balance is 302k. Current value based off Zillow is 435k.

Please let me know if you guys think I should refinance with this quote from a lender or wait until the prepayment penalty is gone. I have 4 years left before the 15k prepayment penalty is gone on the current mortgage. 

LTV- 75%

DSCR 6.75% this rate will bring my mortgage from 2285 to 2116

Pre-Payment Penalty 5-4-3-2-1%

Loan origination 1.5%

Buydown option 1.5% to make it 6.375% this rate will bring my mortgage from 2285 to 2035

Appraisal 725$

Underwriting- 1295$

Thank you guys! 

[Robin Simon]

Its really going to come down to multiple factors, including your personal situation/strategy but it appears you are definitely thinking about things in exactly the right way.

I'd say since it doesn't seem to be an "urgent" need - I'd advise talking to some lenders and since the rate environment is still moving quite a bit, settle on a interest rate / points combo that is "your number" and when market rates move down to that point - have the lender contact you and get ready to go, and just wait until that occurs