Can I refinance a primary residence loan if I'm now using it as a rental property?

[Matt Wells]

If I have a property in a primary residence 30-year conventional loan and I am now using it as a rental property, can I refinance it in the same primary residence loan, or would I get higher investment property rates?

[Randall Alan]

@Matt Wells

If it is no longer your primary, you would get investment rates on a refi.  The first question always asked is, "Are you going to live there?"  If the answer is "no", it will get investment rates.  Also, if you are going to cash out refinance it, your rate will be even higher.  Each item you tack on adds to the risk for the lender, so the rate goes up.  A straight refi on an investment will be more than on a primary, and a cash out refi will probably add on .375 to .5% in my experience.  If cash out refi-ing your property, you will be expected to leave at least 20-25% equity in the property.. sometimes some lenders push it to 30%.

Randy