Refinancing investment properties should be done with through an experienced mortgage professional only. There is more work that needs to be done when refinancing investments, and there are more mistakes that can be made that can cause your refinance to be declined. These mistakes can be avoided by working with a knowledgeable loan officer to handle your financing needs.

The appraisal on an investment property is different than a regular owner occupied home. There needs to be an income analysis and a schedule of rents comparing the subject property to the real estate market that it is in.

Lenders also consider investment properties to be a higher risk loan than an owner occupied property. With this comes higher rates and tougher underwriting guidelines.

When you refinance your investment property there will not be a rescission period for the new loan. If you are getting any cash out you will receive that money at closing instead of having to wait three days like you would if it were your primary residence.

Some lenders have programs available that allow you to finance up to 100% of your Non-Owner Occupied property at a very attractive interest rate. To find out what financing options are available to you, call me at 414-303-1215 or email me at msearing@mayfairmortgage.com.

You can refinance a commercial property, single family home, a 4-unit rental or an apartment building. You can increase your cash flow and lower your monthly mortgage payments when you refinance or convert the equity into cash to remodel your investment property or purchase additional properties. Owning investment property is a smart choice in today's real estate market.

When financing several properties at the same time your mortgage professional may recommend a blanket mortgage. If you do refinance using a blanket mortgage, be sure your loan is structured with release provisions so you can payoff the loan incrementally as you sell or refiance your properties at a future date.

Refinancing an investment property is generally done for two reasons:
1) To Raise Cash
2) To Improve Cashflow

For these reasons, many investors choose to refinance their rental properties using minimum payment option mortgages (Option ARM, Hybrid Option ARM or Fixed Rate Option). Contact us at 414-303-1215 today to see if a minimum payment option loan is right for your investment property refinance.

 

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