Refinance for two rental properties

[Connor Castillo]

Hi all,

I have two rental properties. One of them is in Columbia SC and the other is in Chattanooga TN. They are both long term homes with conventional loans on them. One has a 7.25% interest rate, and the other is a 7.125% rate. Does refinancing make sense right now?

Thanks

[Katie Smith]

Hi Connor!

That really depends on several key factors. Are you considering a refinance to pull cash out for future investments, or are you primarily looking to secure a lower interest rate?

Given current market conditions, rates likely won’t be significantly lower than what you already have, and refinancing comes with associated costs. Ultimately, the decision should align with your long-term strategy—whether that’s leveraging equity to expand your portfolio or optimizing cash flow.

Would love to hear more about your specific goals to help weigh the pros and cons!