Why refinance my investment property?
There are several reasons why you should consider refinancing 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.
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 a rental or other type of property that generates income, investment property financing will most likely be needed to refinance.
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).
Keep in mind that investment property mortgages are generally available for one- to four-unit homes. Properties with five or more units tend to require commercial financing.
eLEND offers a variety of investment property mortgaging options such as 30 year, 20 year, and 15 year fixed rate mortgages, as well as multiple adjustable rate financing solutions. Investment property loans are available for single family homes, condos, and two-to-four unit multi-family homes.
Available Refinance Mortgage Programs
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.
- Adjustable Rate Loans – Introductory rates offer opportunities for short term savings.
- Jumbo Loans – Financing options for high value properties.
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 single family homes, condos, manufactured homes on owned land, and two-to-four unit multi-family properties.
Read more about investment property refinancing.
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