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6 Reasons to Refinance Your Investment Loan in 2023

There are several compelling reasons why a landlord or property investor might look at refinancing rental property assets. At the very least it can help unlock some great wealth-building opportunities. For example, refinancing can potentially allow you to lower your interest rates and monthly payments which could ultimately help you improve property cash flow. We have put together 6 advantages for refinancing your investment loan in 2023:

Lower The Refinance Rates For Your Investment Property

Typically, the interest rate for an investment property runs at least 0.5% – 0.75% higher than what the same borrower might pay for a mortgage on their primary residence. Refinancing can give you access to lower rates if you can show that you are successfully managing the cash flow on your rental property. We can help compare your current interest rate with offers from different lenders before you refinance.

Change The Mortgage Term

Do you want to change your investment property’s loan terms so you own your investment property free and clear sooner? Or perhaps you may also want to consider lengthening your loan term if you have trouble keeping up with your monthly premiums. Or you may want to change from a variable rate to a fixed-rate mortgage which gives you a more consistent set of monthly expenses.

Tap Into Your Home Equity

Your home equity includes any money you put down on the home, plus any principal you’ve paid off. You can borrow against the equity in your home and access the cash through a home equity loan or cash-out refinance. You can use the money to fund renovations, pay off credit card debt or pay for almost anything else.

Increase Your Rental Income

Are you getting the most rent possible out of your investment property? Refinancing to make a few improvements or repairs might allow you to rent the property out for more money. Improving the liveability of your space builds goodwill with your current tenants and increases the market value of your home. This means that you can charge more in rent in the short term and make your money back by selling the property for more money later on.

Finance Other Real Estate Investments

You may want to use your home equity to finance a down payment if you see a real estate investment that you want to buy quickly. Many investors will parlay this built equity into more profit by using it to put money down on another investment. You might have even bigger goals, such as using the money you get from your refinance to invest in a different type of real estate venture, like a commercial property.

Fund Almost Anything Else

Refinancing can give you access to an easy source of cash – and you can use it for almost anything you need. If you can dream it, you can use the money from your home equity to make it a reality.

If you’re ready to refinance your investment property, start the process with your local mortgage professionals here at MyFN today!

If that is too long you’re welcome to take the body out of the bullet points and just have it as the heading – not sure how much space you are wanting to fill so happy for you to work with whatever you need.

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