Refinancing your Rental Property

Gabriel Knight returns once again as a guest blogger for Home Expo Gallery.  Please let us know if you find these articles helpful.

You can refinance your rental property, if you are having problems in maintaining the payments or to save money on the mortgage payments. However, if you are planning to refinance your property, you will be required to consider various factors. There are mainly two options through which you may be able to refinance your rental property, just as in case of ordinary refinancing. One is the cash out refinancing, and simple mortgage refinancing.

In order to refinance your rental property, you will be required to:

  • Talk to the lender you already have loan with – If you are having problems in maintaining the payments on the mortgage, with regards to the rental property, you can talk to your lender. If you are planning to refinance the home, you can ask for the financing options available with the same lender.
  • The equity that is there in your home – You will be required to check the equity amount that has built up in your home.  This is very important for you to obtain a refinance mortgage. For, without the actual equity, you may not be considered eligible for the new loan.
  • Check the options that are available with other lenders – You will have to check the options that are available with other lenders. You will also be required to check, if you are at all eligible to take out the refinance loan. There are numerous lenders who will offer you numerous mortgage products. You will have to choose one that fits your needs.
  • Check the mortgage refinancing calculator for better affordability – Before taking out a refinance loan in order to refinance your rental property, it would be wise of you to use a mortgage refinancing calculator. This is going to help you to compare the different offers, along with finding your affordability. It is extremely important to be aware of your affordability, before taking out a refinance loan.

So, this is how you can refinance your rental property.  However, you will also have to be aware of the credit standards, with regards to rental property. It is required of you to have equity equaling to at least 25% of the value of your rental home. This works as proof of the rental income. You will also be required to show good credit rating, which may help you with getting better refinance mortgage offers. If you have good credit, you may be able to get mortgages at low interest rates. 

Gabriel Knight
Guest Blogger

Leave a Reply