Refinancing Investment Property

by Ram
(Boca Raton, Florida USA)

Ask Kate about refinancing an investment property: Hi Kate, I have a rental home in Florida and need options for refinancing investment properties because my current mortgage rate is really high (6%).

Ram continues... The problem in refinancing is the current appraisal value is 20% less than the remaining mortgage loan amount. Please advice me of my options for refinancing my real estate investment.

Thanks for your help. Regards, Ram

Kate Answers: Refinancing The Investment Property

Dear Ram, Many real estate investors question why refinancing a rental property is so cumbersome.

On top of requiring more paperwork, interest rates and mortgage closing costs are significantly higher compared to refinancing a personal residence.

I could elaborate on lender risk but truthfully, most of my Readers are more interested in preserving home ownership than a mortgage company's philosophy behind lending decisions. No arguments from me!

Investment Refinance

You brought up the biggest roadblock for real estate investor loans. And for that matter, for homeowners refinancing their personal residences these days. Home Appraisal Value

Homeowners can improve a credit rating, increase income and reduce debts. But when it comes to home appraisal values, we are subject to the ever-changing real estate markets. So I understand your frustration.

Real Estate Investor Loans And Negative Equity

In response to Helpless In Kentucky who bought one home without selling the first, I formulated Refinancing Real Estate Investor Loans which covers three options for investors sandwiched between negative cash flow and plummeting real estate values.

I hope other real estate investors reading this would feel free to share their successes in refinancing their investment properties.

Ram, one more thing. I'd like to hear back from you. Let me know if this page was helpful to you. Comment here on Refinancing Investment Property.

Or Ask Kate another question here.

Best wishes,

Return to the home page of Get Your Best Mortgage Rate from Refinancing Investment Property

Tell Your Friends

I want to reach as many home buyers and homeowners as possible with my websites. But I need your assistance.

So please help me spread the word about Refinancing An Investment Property at Get Your Best Mortgage Rate with your friends. Just use these easy buttons.

The information you obtain at this site is not, nor is it intended to be, a substitute for financial, real estate or legal advice. You should consult an attorney, accountant, lender or real estate agent, as applicable, for advice regarding your individual situation. Comments and opinions found here are not necessarily those of Get-Your-Best-Mortgage-Rate.com