DSCR rates are LOW! Time to refi?

[Sean MacDonald]

Big news for real estate investors! The 5-year treasury took a dive today, and we’re now seeing PAR rates at 6.5% for DSCR loans!

For those using DSCR loans to scale their rental portfolios, this could be a golden opportunity. A lower rate means:

Increased cash flow on rental properties
Easier debt service coverage requirements
Potential for better leverage on new deals

As a wholesale lender, I’m seeing investors take advantage of no cash-out seasoning and LTVs up to 85% to maximize their refinancing options. With rates dropping this much, are we about to see a wave of refinances? Or are investors holding out for even lower rates?

Would love to hear from the BP community—who’s locking in deals, and who’s waiting it out?

[Scott Wolf]

I'm seeing clients with equity doing a cashout and buying down into the 5's. That being said, historically the average mortgage rate in the USA is 7.71% so we're well below that right now.

In the end, the adage of "time in the market beats timing the market" usually holds true.  If it's a good asset, it will continue to perform.