If you own an investment property, you already know that getting a mortgage for this type of property is different than a refi of a primary home. If you recall, the qualifying requirements for getting an investment load are more stringent than a primary home loan.
Let's take a look at everything you need to know about refinancing an investment property.
Owning a second property comes with costs, and some may feel that these additional costs tie up too much of their free cash flow. Others choose to refi to free up some money for repairs or improvements to the property.
If this sounds like you, it could make sense to refinance into a better rate --possibly lowering your mortgage payment --and maximizing your earnings on your investment.
Yet others want to use the funds from the refinance to invest in more properties. With a cash-out refi, you can utilize the equity to purchase another property.
Many begin their investment property refi by researching its value and starting the mortgage application. Since the application and document submission can be completed online, the process moves fairly fast.
However, keep in mind that interest rates for investment property loans are higher than with primary property loans. So when researching mortgage rates, the rate you end up getting may be higher than most rates that are posted. The best thing is to contact a mortgage professional --like us--to get the most accurate and lowest rates possible for investment properties.
Here are some of the basic requirements to qualify for a refinance of your investment property. The specific requirements ultimately depend on the lender and the type of loan:
You'll also need to show you have about 6-month's worth of cash in a savings account should you lose your income and need alternate means to pay your monthly obligations.
You'll also need to provide documentation, such as:
Refinancing your investment property is often a great idea, helping you to maintain and achieve your financial goals. However, considering that it's still a big financial decision, it's essential to consider every perspective.
Curious as to whether a refinance makes sense in your situation? Apply now to connect with one of our mortgage professionals and see!
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 235599
Real Estate Broker – CA Dept of Real Estate – Lic #01851459 – NMLS #235599
140 Litton Dr Ste 208
Grass Valley, California 95945
Nevada County Mortgage strives to ensure that its services are accessible to people with disabilities. Nevada County Mortgage has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Nevada County Mortgage makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows nevadacountymortgage.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Nevada County Mortgage accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Nevada County Mortgage continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Nevada County Mortgage website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Nevada County Mortgage website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org