Refinance Your Investment Property
There are several reasons why you should consider a refinance of your investment property, not least of which is you can maximize your property income by reducing your monthly payments by refinancing your existing mortgage to a lower interest rate or fixed rate option. Additionally, investors often need to borrow against the equity in their property to help pay for repairs or other expenses.
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How do investment property refinances differ?
The term ‘investment property’ refers to residential real estate that does not qualify as a primary residence or a second home. Even if the home was owner occupied at the time of purchase, if it is currently rented (tenant-occupied) and generates income, the property is considered an investment.
Because investment properties represent a greater risk due to a higher frequency of default and foreclosure, these loans can be a little tougher to qualify for and generally have a somewhat higher interest rate. Some of the more stringent requirements you’re likely to see include:
- Higher credit score requirement.
- Larger down payment requirement.
- Greater amount of reserves required (reserves are assets that can be used to cover the mortgage and other expenses in the event a property goes unrented).
eLEND offers a variety of investment property mortgaging options such as 30- year, 20-year, 25-year, 15-year and 10-year fixed rate mortgages. Investment property loans are available for 1-2 unit primary residences and approved condos.
Available Refinance Mortgage Programs for Investment Properties
eLEND offers the following refinance mortgage programs:
- Conventional Fixed Rate Mortgages – A fixed interest rate means your payment will stay the same for the life of the loan.
- Jumbo Loans – Financing options for high value properties. PLEASE NOTE: THIS PROGRAM HAS BEEN TEMPORARILY SUSPENDED.
Conventional fixed rate loans and jumbo loans can be used to refinance a primary residence, second or vacation home, or an investment property. Refinancing is also available for 1-2 unit properties and condos.
Read more about investment property refinancing.