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Smart Reasons Savvy Investors Refinance Rental PropertiesInvestment Property Refinance Lenders

There’s no better time than now to refinance your mortgages. It’s especially a good time to refinance a rental property. In fact, the more residential property you have in your portfolio, the more money you can make right now.

Making money is the easy part though. Many people see the immediate returns of pulling equity out or erasing credit card debt. But these moves can have detrimental effects in the long run. It’s important that you refinance for the wrong reasons. Otherwise, you may just end up back in the same place you’re already at but with one less option.

Here are the top three reasons to refinance your home or rental property by the end of this year.

Published in Real Estate Investors

Using Home Equity to Fund a Rental Property Loan

How to Leverage Home EquityOnce you get a decade or two of homeownership under your belt, you learn a lot about the market. There are plenty of ways to get liquidity to fund your next business venture. Home equity is the big one though.

Home equity is something everybody looks forward to. It’s actually an “insider secret” realtors use too. Mastering the real estate market, stock market, or any other market really is all about buying as low as possible and refinancing as high as possible.

It’s also the easiest way to turn one home into two. This gives you the flexibility to do things like have a summer home in the Midwest and a winter home in Arizona or Florida. Of course, two properties means two bills, and that’s just going to make paying for everything even harder. You’re not the first to come across this conundrum.

Published in Real Estate Investors

Free and Clear Rentals Need to RefinanceFree & Clear Rentals Need to Refinance

Rental home investors with mortgage free income properties are flocking to take advantage of a new loan program which enables them to access pent up equity.

So why are sophisticated buy and hold real estate investors rushing to refinance under this new mortgage program, and why do all those with free and clear properties need to act now?

New DSCR mortgage loans from Rental Home Financing offer landlords with income properties to refinance and cash out, at incredibly low interest rates. Many investors have acquired rental homes for cash recently, and while it can feel cozy to some to be mortgage free, there are some very vital reasons for acting on this opportunity now.


This includes…

Investment Mortgage Interest Rates

Investment Rates

There is really only one way for interest rates to go. That’s up. For long term buy and hold investors it doesn’t matter if that takes 2 months, or 2 years. Just a couple point hike (and it will go much higher than that), will make hundreds of thousands of dollars difference in borrowing costs over the time holding even a small portfolio, or single property. That means those that may need to refinance within the next decade or two will be far better off doing it now.

 

Liquidity for Investors

Bar chart liquidity

Liquidity is critical to investors. It provides a cushion for unexpected damage and replacement needs, as well as personal needs such as major health expenses. When crises happen it is normally difficult, if not impossible to refinance. That means at least lining up an active credit line now can be invaluable.

 

Maximizing Investment Returns

return on investment

Being able to recoup capital means being able to take advantage of current opportunities, and lock in great ongoing passive income and wealth building. Those who delay will suffer reduced returns due to a variety of market factors. Check out our DSCR loan program with NO job or income verification messing with your W2.

 

Diversity of Capital to Protect Investors

diversity

Access to more expansion capital now also means the benefits of greater diversity in a portfolio. This helps to keep income consistent, and protects investors from everything from local job market shifts to natural disasters.

 

Reduced Risk for Rental Property Investors

risk

All of the above combine to reduce risk for rental property investors that sensibly leverage their properties now. Additionally, it can work to preserve credit by keeping lines clear and ensure working capital in a pinch.

 

 

Smart and modest leverage is a great tool. Those that hide behind the mirage of comfort that a mortgage free property are unfortunately deluding themselves. There is really no such thing as ‘free and clear’. There will always be property taxes, insurance or repairs. So why deny yourself of the best benefits of leverage?

 

Rental Home Financing Investment Loans

Rental Home Financing
9465 Counselors Way
Suite #200,
Indianapolis, IN 46240

 

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About Rental Home Financing:

Rental Home Financing, as the best mortgage lenders we originate rental home loan products and cash out refinance investment property loans as the best investment property refinance lenders. Commercial blanket loans are available with a commercial purpose to suit your needs.

Also, as DSCR loan specialists, we are currently authorized to make such loans in most all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). When you are ready to get a mortgage for rental property, we are ready to serve you.

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