It may be time to refinance your rental property. But first, you should know that the process can be more difficult than refinancing the home you currently live in.
For one, lenders require at least 25 percent loan-to-value ratio or equity in an investment property. So, you need to have an idea of what your rental is worth before getting started. If you need help with this, call us here at Drake Properties. We can give you an idea over the phone.
Second, expect to pay a higher interest rate. Lenders consider non-owner occupied homes to be more of a risk to lend on.
Third, you will need to coordinate with your tenant if your lender requests to do a full appraisal with physical interior inspection and not just a simple drive-by.
The process can be time consuming, but with rates this low, it might be worth your time to do it now.
Give Drake Properties a call. We can help walk you through the process.